Concord Company purchased a delivery truck for $26,000 on January 1, 2020. The truck has an expected salvage value of $1,160, and is expected to be driven 108,000 miles over its estimated useful life of 8 years. Actual miles driven were 14,800 in 2020 and 15,000 in 2021. a. Calculate depreciation expense per mile under units-of-activity method.
b. Compute depreciation expense for 2020 and 2021 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining-balance method.

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

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