Units-of-Production Method A light truck is purchased on January 1 at a cost of $27,500. It is expected to serve for eight years and have a salvage value of $3,000. It is expected to be used for 96,000 miles over its eight-year useful life. Using the units-of-production method, calculate the depreciation expense for the first and third years of use if the truck is driven 20,000 miles in year 1 and 18,000 miles in year 3. Round interim calculations