Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

13 need just perfect answer no explanation needed please answer all parts in 10 minutes ABC Company on Jan 1, 2021 purchased a delivery van

image text in transcribed

image text in transcribed

13 need just perfect answer no explanation needed please answer all parts in 10 minutes

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? O $4,750 O $4,250 O $5,250 O $4,550 Using the double-declining-balance method, what are the amounts of depreciation expense for year 2? $5,750 O $5,250 0 $4,750 $4,250 Using activity-based depreciation method, what is the balance of accumulated depreciation at the end of year 3? O $16,720 O $8,170 O $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)? $3,167 $3,800 $2,833 O $3,400

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Lost Continent The BBCs Europe Editor On Europes Darkest Hour Since World War Two

Authors: Gavin Hewitt

1st Edition

1444764829, 9781444764826

More Books

Students also viewed these Accounting questions

Question

How are the residuals used in estimating ?????

Answered: 1 week ago

Question

If you were Rob Whittier, how would you resolve this dispute?

Answered: 1 week ago