Xit Company bought a new delivery truck. The manufacturer says that the truck should last for ten years or 120,000 miles. Xit plans to use the truck for 4 years, during which it will be driven 50,000 miles. What is the useful life of the truck for straight-line depreciation purposes

Answer: 4 Years

Explanation:

The Straight line depreciation method is one of the most commonly used depreciation methods.

It involves reducing the value of an asset uniformly until it reaches salvage value.

It is calculated by simply dividing the cost of an asset, less its salvage value, by the useful life of the asset.

In using this method, the useful life will be the 4 YEARS that the company wants to use it for.

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