Exercise 97 Part Level Submission Linton Company purchased a

Exercise 9-7 (Part Level Submission) Linton Company purchased a delivery truck for $34,000 on January 1, 2017. The truck has an expected salvage value of $2,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,000 in 2017 and 12,000 in 2018. (a1) Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, eg 0.52.) Depreciation expense s per mile

Solution

CALCULATION OF THE DEPRECIATION EXPENSES PER MILES UNDER UNITS OF ACTIVITY METHOD Purchase Cost of Truck $                34,000.00 Less: Salvage Value $                  2,000.00 Net Value for Depreciation $                32,000.00 Expected to produce Miless 1,00,000 Miles Depreciation per Miles =                               0.32 Per Mile ($ 32,000 / 100,000 Miless) Answer = $ 0.32 Per Mile