The truck was depreciated by the units-of-production method. Usage of the truck was 22,000 miles, 25,000 and 30,000 miles during the first three years, respectively.

Calculate the depreciation stated for each asset for the first three years. For the building consider it was bought on May of Year 1.

Item Initial cost Book life MACRS class Salvage value Book depreciation Truck $25,000200,000miles5years$2,000 Unit production (UP) Truck Book Depreciation n Dn BV 0 1 2,530 22,470 22,875 19,595 3