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)

you have to take the question at face value and avoid the excess verbage. Focus on what is important

Quote:

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Originally Posted by paraclete

you have to take the question at face value and avoid the excess verbage. focus on what is important

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

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

Quote:

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Originally Posted by statistics40987

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

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

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That is one formula.