Question
At the beginning of 2010, Speedy Delivery Company purchased a delivery van for $28,000. Speedy estimates that at the end of its four-year (or 120,000
At the beginning of 2010, Speedy Delivery Company purchased a delivery van for $28,000. Speedy estimates that at the end of its four-year (or 120,000 mile) service life, the van will be worth $4,000. Assume that actual usage was as follows:
Year Miles driven
2010 35,000
2011 30,000
2012 45,000
2013 30,000
Assuming units of activity, what is the accumulated depreciation of the van as of December 31, 2011?Refer to the information above for Speedy Delivery.
| a. | $6,000 | |
| b. | $11,000 | |
| c. | $13,000 | |
| d. | $15,000 | |
| e. | none of the above |
Refer to the information above for Speedy Delivery Company.
Assuming double declining balance, what is the book value of the van as of December 31, 2011?
| a. | $7,000 | |
| b. | $14,000 | |
| c. | $16,000 | |
| d. | $22,000 | |
| e. | none of the above |
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
The Audit Is A Powerful Management Tool
Authors: Fateh Bouchene
1st Edition
6204366548, 978-6204366548
