Dasher Company acquired a truck for use in its business for $25,500 in a cash transaction. Thetruck is expected to be used over a five-year period, will be driven approximately 18,000 miles peryear, and is expected to have a value at the end of the five years of $4,500. a. Compute the amount of depreciation that will be taken in the first two years of the truck’s use-ful life if the actual miles driven are 16,000 and 18,200, respectively. Round the depreciation per mile to the nearest full cent.b. How does the amount of accumulated depreciation at the end of the second year compare withwhat it would have been had the company chosen the straight-line depreciation method?
Dasher Company acquired a truck for use in its business for $25,500 in a cash transaction. The
truck is expected to be used over a five-year period, will be driven approximately 18,000 miles per
year, and is expected to have a value at the end of the five years of $4,500.
a. Compute the amount of
ful life if the actual miles driven are 16,000 and 18,200, respectively. Round the depreciation
per mile to the nearest full cent.
b. How does the amount of
what it would have been had the company chosen the
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