Calculating Units-of-Production Depreciation Swift Trucking Company purchased a long-haul tractor-trailer for $400,000 at the beginning of the year. The expected useful life of the tractor-trailer rig was 8 years or 500,000 miles.

Salvage value was estimated to be $40,000. During the first 5 years of use, the rig logged the following usage in miles:

Year 1	80,000	miles
Year 2	75,000	miles
Year 3	80,000	miles
Year 4	76,000	miles
Year 5	60,000	miles
Total	371,000	miles

Calculate the depreciation expense to be taken on the tractor-trailer for each year using:

(a) Units-of-production method

Round your answer to the nearest whole number.

Year	Depr exp
1	$
2	$
3	$
4	$
5	$
Total	$

(b) Straight-line method

Round your answer to the nearest whole number.

Year	Depr exp
1	$
2	$
3	$
4	$
5	$
Total	$

Which method gives you higher total depreciation charges over the five-year period?

AnswerUnits-of-production methodStraight-line method

Calculating Units-of-Production Depreciation Swift Trucking Company purchased a long-haul tractor-trailer for $400,000 at the beginning of the year. The expected useful life of the tractor-trailer rig was 8 years or 500,000 miles. Salvage value was estimated to be $40,000. During the first 5 years of use, the rig logged the following usage in miles: 80,000 miles Year 75,000 miles Year 2 Year 3 80,000 miles Year 4 76,000 miles 60,000 miles Year 5 371,000 miles Total Calculate the depreciation expense to be taken on the tractor-trailer for each year using: (a) Units-of-production method Round your answer to the nearest whole number. Year Depr exp 57,600 1 2 54,000 3 57,600 $ 54,720 4 43,200 2,671,200X Total $ (b) Straight-line method Round your answer to the nearest whole number. Year Depr exp X 57,600 $ 1 X 2 $ 111,600 3 $ 169,200 223,920 4 267,120 $ 5 X Total $ Which method gives you higher total depreciation charges over the five-year period? Units-of-production method