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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
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 $3,400Step by Step Solution
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