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asap Chubbyville purchases a delivery van for $24,000. Chubbyville estimates a four-year service life and a residual value of $2,400. During the four-year period, the
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Chubbyville purchases a delivery van for $24,000. Chubbyville estimates a four-year service life and a residual value of $2,400. During the four-year period, the company expecis to drive the van 120,000 miles. Required: Calculate annual depreciation for the four-year life of the von using eoch of the following methods. 1. Stroight-line 2. Double-declining-balance 3. Activity-based (Actual miles driven each year were 18,000 milies in Year 1; 32,000 miles in Year 2:21,000 miles in Year 3, and 25,000 miles in Year 4 . Note that actual total miles of 96,000 fall short of expectations by 24,000 miles) Complete this question by entering your answers in the tabs below. Calculate annual depredation for the four-vear life of the van using the double-decining-balance method. (Rouind yout depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar.)Step by Step Solution
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