A logistics company purchased a new truck for $75,000 and anticipates driving it for 500,000 miles after which it can obtain a salvage value of $12,000. Assume that the company will use this truck for driving 50,000 miles this year. Use this information to answer the following questions.

a. Which book depreciation method is appropriate when there is uneven asset utilization?

Straight Line Depreciation

Declining Balance Depreciation

Units of Production Method

b. Compute the depreciation using the units-of service method.