A Truck Costs $307,000 and Is Expected to Be Driven

question 63

Multiple Choice

A truck costs $307,000 and is expected to be driven 113,000 miles during its five-year life. Residual value is expected to be zero. If the truck is driven 31,000 miles during the first year, how much depreciation should the business record under the units-of-production method? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

• A) $96,050
• B) $28,107
• C) $84,320
• D) $56,070