Question
A trucking company purchases a delivery truck for
₹12,00,000. It expects the truck to deliver 3,00,000 km over its life and have a salvage value of ₹1,20,000. In its first year, the truck travels 60,000 km. Compute the depreciation expense for the first year using the Units of Production method.Solution
• Dep per km = (12,00,000 – 1,20,000) ÷ 3,00,000 = ₹3.60. • Expense = 60,000 × 3.60 = ₹2,16,000.
More Accounts Questions
Into which sea does the Nile River discharge its waters?
The Khyber Pass is located in which country?
Which one of the following longitudes determines the Indian standard time?
What geographical term describes a large sea inlet that is usually concave?
Which is the fifth highest mountain in the world?
Which is the largest freshwater lake in the world?
The Panama Canal connects which two oceans?
Which ocean is the smallest by surface area?
Which of the following statements about rainfall in India is/are correct?
1. Most of the rainfall in India is due to the South-West monsoon
...Which planet is the largest in the Solar System?
