Answered step by step
Verified Expert Solution
Question
1 Approved Answer
answer all 4 parts TB EX Qu. 7-198 Chubbyville purchases a delivery van... Chubbyville purchases a delivery van for $23,400, Chubbyville estimates a four-year service
answer all 4 parts
TB EX Qu. 7-198 Chubbyville purchases a delivery van... Chubbyville purchases a delivery van for $23,400, Chubbyville estimates a four-year service life and a residual value of $1,800, During the four-year period, the company expects to drive the van 105,000 miles. Calculate annual depreciation for the four-year life of the van using each of the following methods 1. Straight-line 00:10:14 Depreciation expense $5.400 2. Double-declining balance. (Round your depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar) Year End of Year Amounts Depreciation Accumulated Expense Depreciation Book Value 1 2 3 4 Total $ 0 Year End of Year Amounts Depreciation Accumulated Expense Depreciation Book Value 7 1 2 3 4 Total $ 0 0:17:56 3. Actual miles driven each year were 19,000 miles in Year 1; 29,000 miles in Year 2: 21,000 miles in Year 3, and 25,000 miles in Year 4 Note that actual total miles of 94,000 fall short of expectations by 11,000 miles Calculate annual depreciation for the four-year life of the van using activity based (Round your depreciation rate to 2 decimal places.) Year End of Year Amounts Depreciation Accumulated Expenso Depreciation Book Value 1 2 3 4 Total $ 0 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started