Assume you have a flower shop and you bought a delivery van for $34,000. You expect the van to remain in service for three years ( 138,000km). At the end of its useful life, you estimate that the van's value will be $880. You estimate the van will travel 36,000km the first year, 56,000km the second year, and 46,000km the third year. Prepare an estimate of the depreciation expense per year for the the three depreciation methods. Show your computations. Which method do you think tracks the useful life cost on the van most closely? How does management determine which depreciation method to use? Beain bv calculatina straiaht-line debreciation expense for each vear. (Round the amounts for debreciation expense to the nearest whole dollar.) Next show your computations for units-of-production depreciation expense for each year. (Round intermediate calculations to two decimal places. Round the amounts for depreciation expense nearest whole dollar. For years with $0 depreciation, make sure to enter " 0 " in the appropriate column.) Then show your computations for double-diminishing-balance method of depreciation. (Round intermediate calculations to two decimal places. Round the amounts for depreciation expense to the nearest whole dollar. For years with $0 depreciation, make sure to enter " 0 " in the appropriate column.) Year1Year2Year3xxx[=Depreciationexpense== Which method do you think tracks the useful life cost on the van most closely? How does management determine what depreciation method to use? The method tracks the useful life cost of the van most closely. How does management determine what depreciation method to use? A. Management should choose the depreciation method that charges the largest depreciation expense in the current year. B. Management should choose a depreciation method that gives them the largest potential for future growth. C. Management should choose a depreciation method that reflects the pattern in which the asset will be used. D. Management should choose the depreciation method that charges the smallest depreciation expense in the current year. Then show your computations for double-diminishing-balance method of depreciation. (Round intermediate calculations to two decimal places. Round the amounts for depreciation expense to the nearest whole dollar. For years with $0 depreciation, make sure to enter "0" in the appropriate column.) Year1Year2Year3xxx=Depreciationexpense== Which method do you think tracks the useful life cost on the van most closely? How does management determine what depreciation method to use? he mathnd tracks the useful life cost of the van most closely. reciation method to use? A double-diminishing-balance reciation method that charges the largest depreciation expense in the current year. straight-line ciation method that gives them the largest potential for future growth. ciation method that reflects the pattern in which the asset will be used. units-of-production reciation method that charges the smallest depreciation expense in the current year
