Atruck costs $316,000 and is expected to be driven 116,000 miles during its five-year life. residual value is expected to be zero. if the truck is driven 27,000 miles during the first year, how much depreciation should the business record under the units-of-production method?

Annual depreciation= $73,551.72

Explanation:

Giving the following information:

A truck costs $316,000 and is expected to be driven 116,000 miles during its five-year life. The residual value is expected to be zero. The truck is driven 27,000 miles during the first year.

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

Annual depreciation= (316,000/116,000)*27,000= $73,551.72

answertrue;