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Chubbyville purchases a delivery van for $22,000. Chubbyville estimates a four-year service life and a residual value of $1,600. During he four-year period, the company
Chubbyville purchases a delivery van for $22,000. Chubbyville estimates a four-year service life and a residual value of $1,600. During he four-year period, the company expects to drive the van 120,000 miles. Required: Calculate annual depreciation for the four-year life of the van using each of the following methods. 1. Straight-line Double-declining-balance Activity-based (Actual miles driven each year were 18,000 miles in Year 1; 31,000 miles in Year 2; 23,000 miles in Year 3; and 26,000 miles in Year 4. Note that actual total miles of 98,000 fall short of expectations by 22,000 miles.) Complete this question by entering your answers in the tabs below. Calculate annual depreciation for the four-year life of the van using the double-declining-balance method. (Round your depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar.) 1. Straight-line 2. Double-declining-balance 3. Activity-based (Actual miles driven each year were 18,000 miles in Year 1; 31,000 miles in Year 2; 23,000 miles in Year 3; and 26,000 miles in Year 4. Note that actual total miles of 98,000 fall short of expectations by 22,000 miles.) Complete this question by entering your answers in the tabs below. Calculate annual depreciation for the four-year life of the van using the activity-based method. (Round your depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar.)
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