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Hurts Rent-A-Car uses the units-of-production depreciation method on its cars. Depreciation expenses are based on mileage. Cars are bought new and sold as soon they
Hurts Rent-A-Car uses the units-of-production depreciation method on its cars. Depreciation expenses are based on mileage. Cars are bought new and sold as soon they reach 40,000 miles. At that mileage, the salvage value is approximately 70 percent of the original cost. Hurts purchased a new Pathfinder for $35,000. If the vehicle is driven 15,262 miles the first year, how much depreciation expense should Hurts record for that vehicle?
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