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Problem 1: Ma Barker Company purchased a new truck on January 1, 2021, at a cost of $50,000. The truck is expected to have a useful life of 160,000 miles and a $10,000 residual value. Ma Barker drove the truck 40,000 miles in 2021 and 60,000 miles in 2022. If Ma Barker Company calculates depreciation based upon miles driven, depreciation expense for 2022 is:
Group of answer choices
Option 1: $18,750
Option 2: $15,000
Option 3: $10,000
Option 4: $12,500
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