How much depreciation expense would be recognized

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Problem 1: ABC Co. purchased a truck to use for deliveries and is attempting to determine how much depreciation expense would be recognized under Units-of-output (based on miles) in first and second year of trucks useful life.

The truck cost $23,000 and is expected to have a value of $5,000 at the end of its six-year life. The truck is expected to be used at the rate of 14,000 miles in the first year, 20,000 miles in the second and third years, and 12,000 miles in the fourth, fifth, and sixth years.

Reference no: EM132707831

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