A truck costs $303,000 and is expected to be driven 115,000 miles during its five-year life
Residual value is expected to be zero. If the truck is driven 29,000 miles during the first year, how much depreciation should the business record under the units-of-production method? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
A) $97,750
B) $25,423
C) $76,270
D) $47,520
C .Depreciation per mile = $303,000 / $115,000 = $2.63
Depreciation for the first year = $2.63 x 29,000 = $76,270
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