A Truck Costs $300,000, and Is Expected to Run 100,000

Multiple Choice

A truck costs $300,000, and is expected to run 100,000 miles during its 5-year life. Residual value is expected to be zero because the truck was used when acquired. If the truck runs 24,000 miles the first year, how much depreciation should the company record under the units-of-production method?

A) $85,000
B) $24,000
C) $72,000
D) $47,000