Homework Answers
Activity Based method ( units of production method )
Depreciation per miles = (Cost - Residual value ) / Useful life (in miles)
= (38200-2600) / 89000
= 0.4 per mile
Depreciation for a year = Depreciation per mile * actual miles travelled
depreciation for 2021 = 0.4* 12300
= $ 4920
depreciation for 2022 = 0.4*12700
= $ 5080
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