Question
Chubbyville purchases a delivery van for $22,800. Chubbyville estimates a four-year service life and a residual value of $2,000. During the four-year period, the company
Chubbyville purchases a delivery van for $22,800. Chubbyville estimates a four-year service life and a residual value of $2,000. During the four-year period, the company expects to drive the van 107,000 miles. Calculate annual depreciation for the four-year life of the van using each of the following methods. 1. Straight-line. Depreciation expense $ 5,200 2. Double-declining-balance. (Round your depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar.) End of Year Amounts Year Depreciation Accumulated Expense Depreciation Book Value 1 2 3 4 Total Prev Next 3. Actual miles driven each year were 18,000 miles in Year 1; 31,000 miles in Year 2; 24,000 miles in Year 3; and 25,000 miles in Year 4. Note that actual total miles of 98,000 fall short of expectations by 9,000 miles. Calculate annual depreciation for the four-year life of the van using activity-based. (Round your depreciation rate to 2 decimal places.) End of Year Amounts Year Depreciation Accumulated Expense Depreciation Book Value 1 2 3 4 Total $
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