Correct answer. Depreciation expense is recorded according to the matching principle. The matching principle requires the recording of costs as expenses during the period in which those costs help generate revenue. The company expects to benefit from the truck for 3 years, so it should allocate the $120,000 cost of the truck over those 3 years. As such, the company should record depreciation expense of $40,000 ($120,000/3 years) in each of the 3 years.