Answer:
$2,800
Explanation:
A company purchased a new truck at the price of $29,400 on January 1, 2019.
The estimated useful life of truck is 200,000 miles.
The salvage value is $1,400
The truck was driven for 20,000 miles in 2019
Therefore, assuming the units-of-production depreciation, 2019 depreciation expense can be calculated as follows
= (price of truck-salvage value/estimated useful life) × number of miles driven by the truck
= ($29,400-$1,400/200,000) × 20,000
= ($28,000/200,000) × 20,000
= 0.14×20,000
= $2,800
Hence the depreciation expense for the year 2019 is $2,800
