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Katie, your Accounting Manager, has asked you to calculate the depreciation for the new company car. The company purchased the new car on June 1,
Katie, your Accounting Manager, has asked you to calculate the depreciation for the new company car. The company purchased the new car on June 1, 2018. - The purchase price was $12,600 and had a useful life of 3 years. - The salvage or residual amount is 10% of the purchase price. - Katie estimated that the car would be driven for a total of 93,000 miles. - In year 1, the car was driven 48,900 miles. In year 2, the car was driven 35,180 miles, and in year 3 , the car was driven 12,300 miles. Round the cost per mile to two decimal places. Calculate the total depreciation expense in Years 1 through 3, using the units of production method
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