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Chubbyville purchases a delivery van for exist23, 700. Chubbyville estimates a four-year service life and a residual value of exist2, 300. During the four-year period,
Chubbyville purchases a delivery van for exist23, 700. Chubbyville estimates a four-year service life and a residual value of exist2, 300. During the four-year period, the company expects to drive the van 105,000 miles. 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.) 3. Actual miles driven each year were 27,000 miles in Year 1: 29,000 miles in Year 2: 22,000 miles in Year 3: and 26,000 miles in Year 4. Note that actual total miles of 104,000 fall short of expectations by 1,000 miles. Calculate annual depreciation for the four-year life of the van using activity-based. (Round your final answers to the nearest whole dollar.)
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