Chapter Six, Exercises 2 and 3

Depreciation methods. Betsy Ross Enterprises purchased a delivery van for $31,000 in January 20X7. The van was estimated to have a service life of 5 years and a residual value of $6,000. The company is planning to drive the van 20,000 miles annually. Compute depreciation expense for 20X8 by using each of the following methods:

a. Units-of-output, assuming 17,000 miles were driven during 20X8

b. Straight-line

c. Double-declining-balance

ACC205 Week Three File Home Insert Page Layout Formulas Data Review view Tell me what you want to do 81000 C67 62 63 Account to Original 64 be changed Amount 65 ASHFORD Ch 6 Ex 2 31000 Purchase price 68 YOUR ANSWERS BASED UPON Questions 69 COURSE START DATE 70 71 Units output 73 Straight-line 74 75 Double-declining-balance 76 77