Question
Chubbyville purchases a delivery van for $24,100. Chubbyville estimates a four-year service life and a residual value of $1,900. During the four-year period, the company
Chubbyville purchases a delivery van for $24,100. 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 104,000 miles. 1. Straight-line. 2. Double-declining-balance. (Round your depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar.) 3. Actual miles driven each year were 24,000 miles in Year 1; 32,000 miles in Year 2; 22,000 miles in Year 3; and 24,000 miles in Year 4. Note that actual total miles of 102,000 fall short of expectations by 2,000 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.)
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