Question: Imus Delivery Service uses accrual accounting, applies the units-of-activity method for depreciating its delivery trucks and closes its books every December 31. On January

its delivery trucks and closes its books every December 31. On January

Imus Delivery Service uses accrual accounting, applies the units-of-activity method for depreciating its delivery trucks and closes its books every December 31. On January 1, 2021, Imus Delivery Service purchased a truck for $126,000. The company expects to drive the truck 100,000 miles over its 12-year useful life. Salvage value is estimated to be $18,000. If the truck is driven 8,000 miles in 2021, how much depreciation expense should Imus record in 2021? $8,000. $10,080. $8,640. $9,333.

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