Swift Trucking Company purchased a long-haul tractortrailer for \($400,000\) at the beginning of the year. The expected useful life of the tractor-trailer rig was eight years or 500,000 miles. Salvage value was estimated to be \($40,000\). During the first five years of use, the rig logged the following usage in miles:

Calculate the depreciation expense to be taken on the tractor-trailer for each year using

(a) the units-ofproduction method and

(b) the straight-line method. Which method gives you higher total depreciation charges over the five-year period?

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Year 1 80,000 miles Year 2.... 75,000 miles Year 3... 80,000 miles Year 4. 76,000 miles Year 5.. 60,000 miles Total 371,000 miles