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-   -   Accounting 111 Question. Only first portion (https://www.askmehelpdesk.com/showthread.php?t=714670)

  • Nov 6, 2012, 03:22 PM
    statistics40987
    Accounting 111 Question. Only first portion
    Finx, Inc. purchased a truck for $35,000. The truck is expected to be driven 15,000 miles per year over a five-year period and then sold for approximately $5,000.

    a.

    Determine depreciation for the first year of the truck's useful life by the straight-line method if the truck is actually driven 16,000 miles. (Omit the "$" sign in your response.)

    Straight-line depreciation $

    b.

    Determine depreciation for the first year of the truck's useful life by the units-of-output method if the truck is actually driven 16,000 miles. (Omit the "$" sign in your response.)

    Units-of-output depreciation $ ( I did figure out this part which is: $6400)
  • Nov 6, 2012, 03:27 PM
    paraclete
    you have to take the question at face value and avoid the excess verbage. Focus on what is important
  • Nov 6, 2012, 03:39 PM
    statistics40987
    Quote:

    Originally Posted by paraclete View Post
    you have to take the question at face value and avoid the excess verbage. focus on what is important

    Thank you again for your help. Do you think I should use the following formula:

    Depreciation = Cost − Salvage Value / Life in Number of Periods
  • Nov 6, 2012, 04:19 PM
    paraclete
    Quote:

    Originally Posted by statistics40987 View Post
    Thank you again for your help. Do you think I should use the following formula:

    Depreciation = Cost − Salvage Value / Life in Number of Periods

    That is one formula.

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