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24 October, 20:48

Sunland Company purchased a delivery truck for $44,000 on July 1, 2022. The truck has an expected salvage value of $6,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,000 in 2022 and 12,000 in 2023. Sunland uses the straight-line method of depreciation. (a) Compute depreciation expense for 2022 and 2023.

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  1. 24 October, 22:32
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    2022: $2375

    2023: $4750

    Explanation:

    2022: ((44,000-6,000) / 8) * 6/12 = $2375

    2023: (44,000-6,000) / 8 = $4750
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