chap7 3

Urban Pizza bought a used Ford delivery van on January 2,2021 , for \\( \\$ 20,200 \\). The van was expected to remain in service for four years (92,500 miles). At the end of its useful life, Urban management estimated that the van's residual value would be \\( \\$ 1,700 \\). The van traveled 32,000 miles the first year, 21,000 miles the second year, 20,000 miles the third year, and 19,500 miles in the fourth year. Read the requirements \\( { }^{4} \\). Requirement 1. Prepare a schedule of depreciation expense per year for the van under the three depreciation methods. Prepare a schedule of depreciation expense per year for the van under the straight-line method (Complete all input fields. Enter a 0 for any zero balances.) Prepare a schedule of depreciation expense per year for the van under the units-of-production (UOP) method (Round any intermediary computations to two decimal places, XXX, and your final answers to the nearest whole dollar Complete all input fields. Enter a 0 for any zero balances) Prepare a schedule of depreciation expense per year for the van under the double-declining-balance (DDB) method (Round any intermediary computations to two decimal places, XXX, and your final answers to the nearest whole dollar Complete all input fields Enter a 0 for any zero balances ) Prepare a schedule of depreciation expense per year for the van under the double declining balance (DDB) method (Round any intermediary computations to two decimal places, \\( X X X \\), and your final answers to the nearest whole dollar Complete all input fields. Enter a 0 for any zero balances.) Requirement 2. Which method best tracks the wear and tear on the van? The (1) method tracks the wear and tear on the van most closely Requirement 3. Which method would Urban prefer to use for income tax purposes? Explain your reasoning in detail. For income tax purposes, Urban's would prefer the (2) method because it provides the (3) depreciation, and thus, the (4) tax deductions in the early life of the asset. 4: Requirements 1. Prepare a schedule of depreciation expense per year for the van under the three depreciation methods. (For unitsof-production and double-declining-balance methods, round to the nearest two decimal places after each step of the calculation ) 2. Which method best tracks the wear and tear on the van? 3. Which method would Urban prefer to use for income tax purposes? Explain your reasoning in detail