If Mel Jones (Classroom Demonstration Exercise 2) amortized his truck by the units-of production method, calculate the

Question:

If Mel Jones (Classroom Demonstration Exercise 2) amortized his truck by the units-of production method, calculate the first year’s amortization based on the following: cost $6,000; residual value $1,000. Estimated mileage is 100,000 kilometres. The truck was driven 8,000 kilometres in year 1.