Silicon Valley Company purchased a van at a cost of $42,000and expects it can be sold for $6,000 after 120,000 miles ofservice. Assuming the units-of-production method is used and thevan is driven for 24,000 miles during the first year, thedepreciation at the end of the first year would be
$4,200.$1,200.$12,000.$7,200.None of these answers are correct.
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