Speed, Inc., is a shipping company. On 1/1/20, the company purchases a new commercial sleeper truck for $700,000 cash. The expected residual value of the truck is $40,000 and the expected useful life is 5 years. The company estimates that the truck will be used to drive 1,000,000miles over its useful life (210,000 miles in 2020; 180,000 miles in 2021 & all subsquent years).
