Exercise 11-1 Depreciation methods [LO11-2]

On January 1, 2013, the Excel Delivery Company purchased a delivery van for $44,000. At the end of its five-year service life, it is estimated that the van will be worth $5,000. During the five-year period, the company expects to drive the van 150,000 miles.

Compute:

1.

Straight line.

2.	Sum-of-the-years