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Delivery Service Express (DSE) has a fleet of trucks and specializes in the delivery of refrigerated foods. The warehouse manager purchased a delivery truck for
Delivery Service Express (DSE) has a fleet of trucks and specializes in the delivery of refrigerated foods. The warehouse manager purchased a delivery truck for $240,000. Part of the job of the Chief Financial Officer (CFO) is to depreciate the delivery truck over its estimated useful life. The CFO is considering three depreciation methods: activity-based, straight-line, and double-declining-balance. The CFO has plotted depreciation each year (left graph) using an estimated five-year useful life. The right graph shows the accumulation of depreciation each year for each method. $120,000 $100,000 Depreciation Each Year by Method $80,000 $60,000 $40,000 $20,000 $0 Year 1 2 3 4 5 Accumulated Depreciation Each Year by Method $250,000 $200,000 $200,000 $150,000 $100,000 -Method 1 - Method 2 $50,000 -Method 3 $0 Year 1 2 3 5 Click here to open the graph(s) in a new tab. Required: Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3 Reg 4 Req 5A Req 5B Which method is depicted by each option: Method 1: Method 2: Method 3: Meth Meth Meth
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