Objective: To calculate depreciation by the units-of-production method A van is acquired on May 12 of the current year at a cost of $39,000. The van is estimated to have a salvage value of $9,000 after running for 120,000 miles. During the first three years of operation, the van was driven for 22,000, 36,000, and 54,000 miles, respectively. Directions: Calculate the depreciation for each of the first three years by using the units-of-production method.

Depreciation Expense Year Year 1 Year 2 Year 3 miles per mile Check Figure