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Montello Inc. purchases a delivery truck for $11,000. The truck has a salvage value of $3,000 and is expected to be driven for 80,000 miles.

Montello Inc. purchases a delivery truck for $11,000. The truck has a salvage value of $3,000 and is expected to be driven for 80,000 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 25,000 miles. Calculate the annual depreciation expense.

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