A truck acquired at a cost of $69,000 has an estimated residual value of $12,000, has an estimated useful life of 300,000 miles

A truck acquired at a cost of $69,000 has an estimated residual value of $12,000, has an estimated useful life of 300,000 miles, and was driven 77,000 miles during the year. 

Determine (a) the depreciable cost, (b) the depreciation rate, and (c) the units-of-activity depreciation for the year.

Answer:

a. $57,000  ($69,000 – $12,000)

b. $0.19 per mile  ($57,000 ÷ 300,000 miles)

c. $14,630  (77,000 miles × $0.19)