Question
Burgers to Go purchased a new delivery car at the beginning of the year at a cost of $ 25,700. The estimated useful life of
Burgers to Go purchased a new delivery car at the beginning of the year at a cost of $ 25,700. The estimated useful life of the car is five years, and its estimated productivity is 80,000 miles. Its salvage value is estimated to be $ 1,700. Miles used yearly are as follows: Year 1, 16,000 miles; Year 2, 20,000 miles; Year 3, 13,000 miles; Year 4, 15,000 miles; and Year 5, 16,000 miles. Complete a separate depreciation schedule for each of the three methods given for all five years. (Round your answers to the nearest dollar.)
1. Straight-line method
2. Activity method
3. Double-declining balance method
1. Complete the depreciation schedule using the straight-line method. (Round your answers to the nearest dollar.) Cost of Depreciation Acc. Dep. Book Value Year Equipment Expense End of Year End of Year 25,700 25,700 25,700 25,700 25,700 2 4 2. Complete the depreciation schedule using the activity method. (Round your answers to the nearest dollar.) Acc. Dep. End of Year Cost of Depreciation Book Value Year Equipment Expense End of Year $25,700 25,700 25,700 2 3 3. Complete the depreciation schedule using the double-declining balance method. (Round your answers to the nearest dollar.) Cost of Depreciation Acc. Dep. Book Value YearEquipment Expense End of Year End of Year 25,700 25,700 25,700 25,700 25,700 2 4Step by Step Solution
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