Question
Chubbyville purchases a delivery van for $23,900. Chubbyville estimates a four-year service life and a residual value of $2,400. During the four-year period, the company
Chubbyville purchases a delivery van for $23,900. Chubbyville estimates a four-year service life and a residual value of $2,400. During the four-year period, the company expects to drive the van 102,000 miles.
1. Straight-line. depreciation
3. Actual miles driven each year were 24,000 miles in Year 1; 31,000 miles in Year 2; 19,000 miles in Year 3; and 24,000 miles in Year 4. Note that actual total miles of 98,000 fall short of expectations by 4,000 miles. Calculate annual depreciation for the four-year life of the van using activity-based. (Round your depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar.)
n rate to 2 decimal places. Round your final answers to 2. Double-declining-balance. (Round your depreciatio the nearest whole dollar.) End of Year Amounts Depreciation Accumulated Year Expense Depreciation Book Value 2 3 4 Total$
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