Question
5 Part 3 of 3 Required information [The following information applies to the questions displayed below.) On January 1, Year 1, a company purchased
5 Part 3 of 3 Required information [The following information applies to the questions displayed below.) On January 1, Year 1, a company purchased a delivery vehicle for $40,000. At the end of its five-year service life, it is estimated that the vehicle will be worth $4,000. During the five-year period, the company expects to drive the vehicle 121,000 miles. Required: Calculate annual depreciation for the five-year life of the vehicle using each of the following methods. 3. Units of production using miles driven as a measure of output, and the following actual mileage: Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Year Miles Depreciation Year 1 15,000 Year 2 31,000 Year 31 22.000 Year 4 27,000 Year 5 28,000 Total
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