What amount should be recorded in year one for depreciation


Question - Primm Industrial Contractors purchased a new truck on January 1st for $35,000. The truck is expected to have a useful life of five years with a salvage value of $4,500. It is estimated that the truck will be able to operate for 200,000 miles. In year one, Primm Industrial Contractors put 46,000 miles on the truck. What amount should be recorded in year one for depreciation expense if the units-of-production method is used?

A) $7,000

B) $7,015

C) $6,100

D) $8,050

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Accounting Basics: What amount should be recorded in year one for depreciation
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