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25. Lilly Dilly Delivery Service purchased a delivery van for $50,000 on 1/1/19. Lilly estimates that the van will have a four-year service life, and
25. Lilly Dilly Delivery Service purchased a delivery van for $50,000 on 1/1/19. Lilly estimates that the van will have a four-year service life, and the residual value of the van is $5,000. During the four year period, the company expected to drive the van 120,000 miles. Actual miles driven each year were: 33,000 miles in year 1, 36,000 miles in year 2, 28,000 miles in year 3, and 30,000 miles in year 4. Please pay attention to the dates! Using straight line depreciation, the annual depreciation for 2020 was: 11,250 12,500 13,500 15,000 25,000
25.
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