Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Danube recently acquired a delivery van for $24,200 paying cash. Danube projects a 4 year useful service life and a remaining residual value on the

Danube recently acquired a delivery van for $24,200 paying cash. Danube projects a 4 year useful service life and a remaining residual value on the delivery van of $2,200. Danube expects to drive the van 106,000 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

2. Double-declining-balance. (Round your depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar.) End year ammounts. Years 1,2,3, with depreciation expense, accumulated depreciation and book value for each year.

3. Actual miles driven each year were 19,000 miles in Year 1; 29,000 miles in Year 2; 23,000 miles in Year 3; and 25,000 miles in Year 4. Note that actual total miles of 96,000 fall short of expectations by 10,000 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 year 1, 2, 3, 4, with depreciation expense, accumulated depreciation and book value for each year.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Wiley CIAexcel Exam Review 2018 Part 1 Internal Audit Basics

Authors: S. Rao Vallabhaneni

1st Edition

1119482569, 978-1119482567

More Books

Students also viewed these Accounting questions