A truck has an estimated useful life of 150,000 miles. The original cost is $60,000.00 and the salvage value is $5,000.00. The miles driven were 18,000 for year 1 and 19,500 for year 2. The unit depreciation rate is

$0.27.
$3.67.
$0.367.
$0.40.

The unit depreciation rate can be found by dividing the depreciation base by the estimated useful life, in miles or whatever units happens to be used.

In this case, the depreciation base is 60,000 - 5,000 = $55,000
The useful life is 150,000 miles
The unit depreciation rate, therefore, is 55,000 ÷ 150,000 = $0.367/mile

Answer is C) $0.367 / mile

Answer Link

A truck has an estimated useful life of 150,000 miles. The original cost is $60,000.00 and the salvage value is $5,000.00. The miles driven were 18,000 for year 1 and 19,500 for year 2. The unit depreciation rate is $0.27. $3.67. $0.367. $0.40.

Respuesta :

Otras preguntas

A truck has an estimated useful life of 150,000 miles. The original cost is $60,000.00 and the salvage value is $5,000.00. The miles driven were 18,000 for year 1 and 19,500 for year 2. The unit depreciation rate is

$0.27.
$3.67.
$0.367.
$0.40.