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Uber Inc purchased a car for $41,200. The car has a salvage value of $2,200 and...

Uber Inc purchased a car for $41,200. The car has a salvage value of $2,200 and is estimated to be in use for 200,000 miles. What is the depreciation expense for Year 3 assuming mileage used in year 1 was 12,600, year 2 was 24,470, and year 3 was 20,310?

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Answer #1

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FOr year 3, depreciation will be

3960.45

Working:-

Depreciation Cost - Residual value 39000 41200-2200
Useful life 2,00,000 miles
Depreiciation per hr 0.195 per mile
Depreciation
Year Mileage Depreciation
1 12600 2457 (12600*0.195)
2 24470 4771.65 (24470*0.195)
3 20310 3960.45 (20310*0.195)
11189.1
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