A barge is expected to be operational for 280,000 miles. If the boat costs $19,000.00 and has a projected salvage value of $1900.00, find the unit depreciation.

Question

 A barge is expected to be operational for 280,000 miles. If the boat costs $19,000.00 and has a projected salvage value of $1900.00, find the unit depreciation.

Answer 1

Take the amount to be depreciated ($19,000 - $1,900) and divide by 280,000 miles; the quotient will be some number (depreciation in $ per mile).