Answer:
the depreciation rate is $7,400
Step-by-step explanation:
The computation of the depreciation expense for the year 2 is shown below:
But before that the depreciation rate would be
= (Purchase cost - salvage value) ÷ (estimated miles)
= ($48,000 - $8,000) ÷ (100,000 miles)
= $0.40
Now the depreciation expense is
= Truck drove × depreciation rate
= 18,500 × $0.40
= $7,400
hence, the depreciation rate is $7,400