Question
Corner Community Pharmacy purchased a delivery van having the following characteristics: Cost $29,800 Estimated useful life (years) 5 Residual value $3,800 Estimated miles of use
Corner Community Pharmacy purchased a delivery van having the following characteristics:
| Cost | $29,800 |
| Estimated useful life (years) | 5 |
| Residual value | $3,800 |
| Estimated miles of use during useful life | 260,000 |
| Miles of use during year 1 | 65,000 |
Assume the pharmacy uses the double-declining-balance method of depreciation. Compute depreciation expense for year 2.
| $7,152 | ||
| $3,352 | ||
| $11,920 | ||
| $5,200 |
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
7th edition
978-1118344262, 111834426X, 1118162285, 978-1118562208, 1118562208, 978-1118162286
