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ABC Lawn Care paid $17,000 for a new dump truck which had an estimated useful life of 4 years. The dump truck had a total capacity of 100,000 miles and a residual value of $1,000. ABC put 20,000 miles on the dump truck in year 1 and 27,000 miles on it in year 2. After using it for those 2 full years, ABC Lawn Care sold it for $6,000 and reported a loss on disposal of $3,480.

Showing the formula and calculations used, what is the depreciation expense for year one and year two using the straight line method as well as the units of production method?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92277087

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