If a dump truck for hauling coal has an estimated net cost of $90,000 and is expected to give service for 250,000 miles, resulting in a salvage value of $5,000, what would be the depreciation per mile Compute the allowed depreciation amount for the same truck 's usage amounting to 30,000 miles ...

If a dump truck for hauling coal has an estimated net cost of $90,000 and is expected

Question:

If a dump truck for hauling coal has an estimated net cost of $90,000 and is expected to give service for 250,000 miles, resulting in a of $5,000, what would be the depreciation per mile? Compute the allowed depreciation amount for the same truck's usage amounting to 30,000 miles.
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...