Ask Question
28 September, 06:48

Exercise 10-07 a1-b2 Bramble Company purchased a delivery truck for $26,000 on January 1, 2020. The truck has an expected salvage value of $1,160, and is expected to be driven 108,000 miles over its estimated useful life of 10 years. Actual miles driven were 15,500 in 2020 and 14,700 in 2021. Calculate depreciation expense per mile under units-of-activity method.

+3
Answers (1)
  1. 28 September, 08:55
    0
    2020 = $3,565

    2021 = $3,381

    Explanation:

    Depreciation Expense per mile:

    = (Cost of delivery truck - Salvage value) : Expected miles driven

    = (26,000 - 1,160) : 108,000

    = 0.23

    Depreciation Expense for 2020:

    = Depreciation Expense per mile * Actual miles driven

    = $0.23 * 15,500

    = $3,565

    Depreciation Expense for 2021:

    = Depreciation Expense per mile * Actual miles driven

    = $0.23 * 14,700

    = $3,381
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Exercise 10-07 a1-b2 Bramble Company purchased a delivery truck for $26,000 on January 1, 2020. The truck has an expected salvage value of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers