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Lemon Corporation purchased a truck at the beginning of 2017 for $109,200. The truck is estimated to have a salvage value of $4,200 and a useful life of 120,000 miles. It was driven 21,000 miles in 2017 and 29,000 miles in 2018. What is the depreciation expense for 2017

Respuesta :

Answer:

the depreciation expense for 2017 is $18,375

Explanation:

The computation of the depreciation expense for 2017 is shown below:

= (Truck cost - salvage value) ÷ useful life in miles × driven miles in year 2017

= ($109,200 - $4,200) ÷ 120,000 miles × 21,000 miles

= $18,375

Hence, the depreciation expense for 2017 is $18,375

Therefore the above formula should be applied for the same

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