a) Compute the first year of depreciall ( 37 M - 5M ) / 5 = 6.4 M b) Compute the book value at the end of the first year 37M- 6. 4 M= 30.6 M Units-of-Production Method Problem 10: Use the information for the truck. Assume that we expect to drive the truck 20,000 miles the first year, 30,000 in the second year, 25,000 in the third year, 15,000 in the fourth year, and 10,000 in the fifth year, for a total of 100,000 miles. Compute depreciation for the first year. Step 1: Depreciation per unit = (cost - residual value)/useful life in units Step 2: Units-of-production depreciation = depreciation per unit x current year usage Depreciation per unit =