Assignment:
ABC Lawn Care paid $17,000 for a new dump truck which had an estimated useful life of 4 years. The dump truck had a total capacity of 100,000 miles and a residual value of $1,000. ABC put 20,000 miles on the dump truck in year 1 and 27,000 miles on it in year 2. After using it for those 2 full years, ABC Lawn Care sold it for $6,000 and reported a loss on disposal of $3,480.
Showing the formula and calculations used, what is the depreciation expense for year one and year two using the straight line method as well as the units of production method?
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.