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can you answer the last two parts? Assume you have a fower shop and you bought a delivery van for $34,000. You expect the van
can you answer the last two parts?
Assume you have a fower shop and you bought a delivery van for $34,000. You expect the van to remain in service for three years (s47,000 kn) At the end of its useful ufe, you estmate that the van's residual value will be 53,130 . You estimate the van wil travel 39,000km the first year, 59,000km the second year, and 49,000km the sied year. Ptepare an estimsle of the depreciation expense per year for the van under the three depreciation methods. Show your computabons. Which method do you think tracks the uselul ife cost on the van most closely? How does mansgement determine which depteciason method to use? Begin by celculating straightline depreciation expense for each yeat. (Round the amounts for deprecintion expense to the nearest whole dollar.) Next show your computations for units-of-production depreciation expthse for each yeat, (Round intermediate calcutations to two decimal places, Round the amounts for depreciation expense to the nearest whole dollar. For years with $0 depreciation, make sure to enter Oin the approprlate column.) Then show your computations for docble-dimiishing-bwlance method of depreciation. (Round intermediate calculations to two decimal places. Round the amounts for depreciation expen to the nearest whole dollar. For years wlth 50 depreciation, make sure to enter " 0 " in the appropriate column.) Step by Step Solution
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