Fernandez Corporation purchased a truck at the beginning of 2012 for $54,600. Th

Question

Fernandez Corporation purchased a truck at the beginning of 2012 for $54,600. The truck is estimated to have a salvage value of $2,600 and a useful life of 208,000 miles. It was driven 29,900 miles in 2012 and 40,300 miles in 2013. Compute depreciation expense for 2012 and 2013.(Round answers to 0 decimal places, i.e. 2,250.)

2012 $ 2013 $ Fernandez Corporation purchased a truck at the beginning of 2012 for $54,600. The truck is estimated to have a salvage value of $2,600 and a useful life of 208,000 miles. It was driven 29,900 miles in 2012 and 40,300 miles in 2013. Compute depreciation expense for 2012 and 2013.(Round answers to 0 decimal places, i.e. 2,250.)

Explanation / Answer

Depreciable amount =54600-2600= 52000

depreciation expense for 2012 = 29,900/208000*52000=$7475

depreciation expense for 2013 = 40,300/208000*52000=$10075

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