A truck was purchased on January 2 at a cost of $60,000. It is expected to be used for 5 years and to have a residual value of $5,000 after 120,000 miles of service. The truck was driven for 23,000 miles the first year and 25,000 miles the second year. Calculate the depreciation expense to the nearest dollar for the first and second years.
Definitions:
Common Stock
A form of corporate equity ownership, a type of security representing an ownership stake in a corporation.
Market Price
The immediate rate at which assets or services are traded in the open market.
Par Common Stock
The nominal or face value of a share of common stock, as stated in the corporate charter.
Fair Market
The price at which a willing buyer and seller would agree to transact in an open and unrestricted market.
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