Bonita Corporation purchased a truck at the beginning of 2020 for $54,500. The truck is estimated to have a salvage value of $2,180 and a useful life of 174,400 miles. It was driven 25,070 miles in 2020 and 33,790 miles in 2021. Compute depreciation expense using the units-of-production method for 2020 and 2021.

depreciation expense for 2020 and 2021= $7, 521 and$10,137 respectively.

Explanation:

Depreciation  cost = Purchase cost - Salvage value

= $54,500 - $2, 180

= $52,320

Given that useful life = 174,400 miles, we have that the

Depreciation per mile = Depreciation cost / useful life in miles

=$52,320/174,400 = $0.30 per mile

2020 Depreciation expense  = 25, 070 X $0.30 = $7, 521

2021 Depreciation expense  = 33,790 X  $0.30 = $10,137

a) both were commissioned explorers

there was no passage listed but using the process of elimination i'd say it was d. the high economy would do the opposite. i don't see how low prices would affect it. high unemployment is possible but i feel d is the better answer.