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Exercise 7-15A Determine activity-based depreciation (LO7-4) Tasty Subs acquired a delivery truck on October 1, 2021, for $22,200. The company estimates a residual value of
Exercise 7-15A Determine activity-based depreciation (LO7-4)
Tasty Subs acquired a delivery truck on October 1, 2021, for $22,200. The company estimates a residual value of $2,400 and a six-year service life. It expects to drive the truck 110,000 miles. Actual mileage was 5,800 miles in 2021 and 20,600 miles in 2022.
Required:
Calculate depreciation expense using the activity-based method for 2021 and 2022, assuming a December 31 year-end. (Do not round your intermediate calculations.)
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