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Chubbyville purchases a delivery van for $23,300. Chubbyville estimates a four- year service life and a residual value of $1,900. During the four-year period, the
Chubbyville purchases a delivery van for $23,300. Chubbyville estimates a four- year service life and a residual value of $1,900. During the four-year period, the company expects to drive the van 108,000 miles. Calculate annual depreciation 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 Depreciation Year Book tue 1 2 3 4 4 Total Prav 8 af 12 H Mart 3. Actual miles driven each year were 18,000 miles In Year 1:32,000 miles in Year 2 23,000 miles in Year 3, and 24,000 miles in Year 4. Note that actual total miles of 97,000 fall short of expectations by 11,000 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 Depreciation Accumulated Expense Depreciation Year Book Value 1 2 3 Total
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