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11 Need just answer in 10 minutes. I will rate positive ABC Company on Jan 1, 2021 purchased a delivery van for $21,000. To complete
11 Need just answer in 10 minutes. I will rate positive
ABC Company on Jan 1, 2021 purchased a delivery van for $21,000. To complete the purchase, the company also incurred a $800 shipping cost and $1,200 sales tax. The company estimates that at the end of its four-year service life, the van will be worth $4,000. During the four-year period, the company expects to drive the van 100,000 miles. Actual miles driven each year were 20,000 miles in year 1; 25,000 miles in year 2:43,000 miles in year 3, and 55,000 miles in year 4. Required: Using Straight-line depreciation method, what is the annual depreciation expense? $4,750 $4,250 $5,250 $4.550 Using the double-declining-balance method, what are the amounts of depreciation expense for year 2? $5.750 $5,250 O $4750 $4,250 Using activity-based depreciation method, what is the balance of accumulated depreciation at the end of year 3? O $16,720 $8,170 $14,960 O $7,310 Suppose that the company decided on December 31, 2022 (Year 2) that the useful life of the van will be 5 years total (instead of 4 years total). Assume that the company uses the straight-line method and the change will become effective in 2023. What will be the amount of depreciation expense in 2023 (year 3)? O $3.167 O $3,800 $2,833 O $3,400Step by Step Solution
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