Using the activity method, calculate the first two years of depreciation expense for a vehicle that cost

$ 32 comma 000$32,000,

has an estimated useful life of five years or

125 comma 000125,000

miles, and has an estimated salvage value of

$ 2 comma 500$2,500.

The number of miles driven each year is as follows:

Year 1	25 comma 00025,000
Year 2	35 comma 00035,000
Year 3	15 comma 00015,000
Year 4	45 comma 00045,000
Year 5	5 comma 0005,000

Let's calculate the depreciable cost when we employ the activity method.

		-		=	Depreciable cost
		-		=

Now we can determine the depreciation per unit. (Enter the cost per mile to three decimal places.)

		/		=	Depreciation per mile
		/		=

Now that the cost per unit has been established we can depreciate the vehicle based on the number of miles driven.

Year		Miles driven	x	Depreciation per mile	=	Depreciation expense
1			x		=
2			x		=

Choose from any list or enter any number in the input fields and then continue to the next question.