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Flowerworks Corporation purchases a vehicle for $30.400 to deliver flowers to the surrounding community. Flowerworks estimates that at the end of its four-year useful life,
Flowerworks Corporation purchases a vehicle for $30.400 to deliver flowers to the surrounding community. Flowerworks estimates that at the end of its four-year useful life, the delivery vehicle will be worth $5,200. During the four-year period, the company plans to drive the vehicle 157,500 miles Actual miles driven each year were 42,000 miles year 1 and 46,000 miles in year 2. Required: Calculate annual depreciation for the first two years of the vehicle using each of the following methods. (Do not round your Intermediate calculations.) 1. Straight-line Year Annual Depreciation 1 2 2. Double-declining-balance Year Annual Depreciation 3. Activity-based Year Annual Depreciation 1
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