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Your owner also purchased a used automobile to be used in the business. It cost her $18,000. She plans to drive the vehicle 120,000 miles,
Your owner also purchased a used automobile to be used in the business. It cost her $18,000. She plans to drive the vehicle 120,000 miles, then sell it for $6,000. She drives it 40,000 miles in its first year of use. If she uses the output method (estimated miles to be driven) as the base for her depreciation, what is the amount of depreciation in the first year? Question 8 options: $7,200 $4,500 $4,000 $6,000
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