Swifty Corporation purchased a truck at the beginning of 2020 for $109600. The truck is estimated to have a salvage value of $4100 and a useful life of 123000 miles. It was driven 18000 miles in 2020 and 26000 miles in 2021. What is the depreciation expense for 2020? a. $37752
b. $22308
c. $16639
d. $15444

Annual depreciation= $15,444

Explanation:

Giving the following information:

Purchase price= $109,600

Salvage value= $4,100

Useful life= 123,000

Miles driven 2020= 18,000

To calculate the depreciation expense, we will use the units-of-production method:

Annual depreciation= [(original cost - salvage value)/useful life of production in miles]*miles drive

Annual depreciation= [(109,600 - 4,100)/123,000]*18,000

Annual depreciation= 0.858*18,000

Annual depreciation= $15,444

answer; i believe the correct answer is (business necessity defense;

d. all of the above are true.