Question
I would appreciate the help with this assignment. (Learning Objective 3: Determine depreciation amounts by three methods) Ralph?s Pizza bought a used Toyota delivery van
I would appreciate the help with this assignment.
(Learning Objective 3: Determine depreciation amounts by three methods) Ralph?s Pizza bought a used Toyota delivery van on January 2, 2012, for $18,600. The van was expected to remain in service for four years (35,000 miles). At the end of its useful life, Ralph?s officials estimated that the van?s residual value would be $2,500. The van traveled 13,500 miles the first year, 12,000 miles the second year, 3,500 miles the third year, and 6,000 miles in the fourth year. Prepare a schedule of depreciation expense per year for the van under the three depreciation methods discussed in this chapter. (For units-of-production and double-declining-balance, round to the nearest two decimals after each step of the calculation.)
Which method best tracks the wear and tear on the van? Which method would Ralph?s prefer to use for income tax purposes? Explain in detail why Ralph?s prefers this method.
I also attached a sheet with the same information on it.
E7-19A Ralph's Pizza on page 440 of your text book. There is No template, create your excel sheet . E7-19A (Learning Objective 3: Determine depreciation amounts by three methods) Ralph's Pizza bought a used Toyota delivery van on January 2, 2012, for $18,600. The van was expected to remain in service for four years (35,000 miles). At the end of its useful life, Ralph's officials estimated that the van's residual value would be $2,500. The van traveled 13,500 miles the first year, 12,000 miles the second year, 3,500 miles the third year, and 6,000 miles in the fourth year. Prepare a schedule of depreciation expense per year for the van under the three depreciation methods discussed in this chapter. (For units-of-production and double-declining-balance, round to the nearest two decimals after each step of the calculation.) Which method best tracks the wear and tear on the van? Which method would Ralph's prefer to use for income tax purposes? Explain in detail why Ralph's prefers this methodStep by Step Solution
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