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Chubbyville purchases a delivery van for $22,900. Chubbyville estimates a four-year service life and a residual value of $1600. During the four-year period, the company
Chubbyville purchases a delivery van for $22,900. Chubbyville estimates a four-year service life and a residual value of $1600. During the four-year period, the company expects to drive the van 106,000 miles. Calculate annual depreclation for the four-year life of the van using each of the following methods. 1. Straight-line Depreciation expense 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 Depreciation Accumulated Expense Year Book Value Depreciation 2 3 4 Total 3. Actual miles driven each year were 19,000 miles In Year 1: 32000 miles in Year 2 21,000 miles In Year 3; and 25,000 miles In Year 4 Note that actual total miles of 97,000 fall short of expectations by 9,000 miles. Calculate annual depreciation for the four-year life of the van using activity-based. (Round your depreclation rate to 2 declmal places.) End of Year Amounts Depreciation Accumulated Expense Depreciation Year Book Value 1 2 3 4 Total
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