Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Danube recently acquired a delivery van for $23,900 paying cash. Danube projects a 4 year useful service life and a remaining residual value on the
Danube recently acquired a delivery van for $23,900 paying cash. Danube projects a 4 year useful service life and a remaining residual value on the delivery van of $2,000. Danube expects to drive the van 109,000 miles during the useful service life. Please compute the annual depreciation for the 4 year life of the delivery van for each of these methods: 1. Straight-line. Depreciation expense $ 5,475 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 Value Total $ 0 3. Actual miles driven each year were 19,000 miles in Year 1; 31,000 miles in Year 2; 24,000 miles in Year 3; and 27,000 miles in Year 4. Note that actual total miles of 101,000 fall short of expectations by 8,000 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 Tear Book Value $ 0
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started