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Carrie Heffeman Company purchased a delivery van on January 1, 2013, for $50,000. 1 he van was expected to remain in service 4 years (or
Carrie Heffeman Company purchased a delivery van on January 1, 2013, for $50,000. 1 he van was expected to remain in service 4 years (or 100,000 miles) and has a residual value of $5,000. The van traveled 30,000 miles the first year, 25,000 miles the second year, and 22,500 miles in the third and fourth years. Prepare a schedule of depreciation expense per year for the first four years of the asset's life using the (a) straight-line method, (b) units-of-production method, and (c) double-declining-balance method. Prepare a schedule of the book value of the van for each of the four years using the (a) straight-line method, (b) units-of-production method and (c) double-declining-balance method
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