Truck 1:

Acquisition Date: January 1, 2019

Cost: $8,000,000

Useful life: 300,000 miles

Residual value: $1,000,000 after 300,000 miles

Depreciation per mile = (Cost - Residual Value) / Useful Life in miles

Depreciation per mile = (8,000,000 - 1,000,000) / 300,000 = $23.33

Depreciation for 2022 = Annual Mileage in 2022 * Depreciation per mile

Depreciation for 2022 = 30,000 * 23.33 = $699,900

Truck 2 (Sold on January 1, 2019)

The truck was sold, so we would have to calculate the depreciation up to the date that the asset

was sold. So,

Depreciation for 2019 = Annual Mileage in 2019 * Depreciation per mile

Depreciation for 2019 = $25,000 * 23.33 = $583,250

Truck 3 (The New Truck was acquired on June 30, 2022)

Cost: $9,000,000

Useful life: 300,000 miles

Residual value: $1,200,000 after using it for 300,000 miles

Depreciation per mile = (Cost - Residual Value) / Useful Life in miles

Depreciation per mile would be = (9,000,000 - 1,200,000) / 300,000 = $26

Depreciation for 2022 = Annual Mileage in 2022 * Depreciation per mile

Depreciation for 2022 = 20,000 * 26 = $520,000

Total Depreciation 2022=Depreciation Truck 1 2022+Depreciation Truck 2 2019+Depreciation

Truck 3 2022

Total Depreciation 2022 = 699,900 + 583,25000 + 520,000 = $1,803,150