UNITS-OF-PRODUCTION DEPRECIATION

Use the same information in Cornerstone Exercise 7-17, except that Irons uses the units-of-production method of depreciation. Irons expects the truck to run for 150,000 miles. The actual miles driven in 2009 and 2010 were 40,000 and 36,000, respectively
Exercise 7-17
STRAIGHT-LINE DEPRECIATION
Irons Delivery, Inc., purchased a new delivery truck for $42,000 on January 1, 2009. The truck is expected to have a $2,000 residual value at the end of its five-year useful life. Irons uses the straight-line method of depreciation.