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Assume that the AaCo Company purchases a delivery van on January 1, 20x1 at a cost of $40,000. Assume also that AaCo's treasurer estimates that

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Assume that the AaCo Company purchases a delivery van on January 1, 20x1 at a cost of $40,000. Assume also that AaCo's treasurer estimates that the delivery van will have a five year life and a $5,000 salvage value. Assume where applicable that the estimated useful life is 100,000 miles. Assume also that AaCo actually uses the truck for 25,000 miles during 20x1, 10,000 miles during 20x2. 20,000 miles during 20x3, 18,000 miles during 20x4, and 27,000 miles during 20x5. Compute depreciation expense for calendar year 20x2 (the second year) under each of the methods listed below. Insert each answer in the space provided on the separate answer sheet Do not put your answers below. A. Straight-line B. Sum of the years' digits C. Units of production D. Double declining balance

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