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DEPRECIATION CALCULATIONS STRAIGHT-LINE AND UNITS-OF- PRODUCTION METHODS Lucianno's Pizza purchased a car to be used in delivering pizzas. The car cost $14,000. It will be
DEPRECIATION CALCULATIONS STRAIGHT-LINE AND UNITS-OF- PRODUCTION METHODS Lucianno's Pizza purchased a car to be used in delivering pizzas. The car cost $14,000. It will be used for 5 years, after which its re- sidual value will be about $2,000. In those 5 years, Lucianno's estimates that the car will be driven 80,000 miles. 1. Calculate depreciation for all 5 years, us- ing the straight-line method. 2. Assume that the car was driven 10,000 miles in year 1, 15,000 in year 2, 18,000 in year 3, 20,000 in year 4, and 17,000 in year 5. Calculate depreciation, using the units- of-production method for all 5 years
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