Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jalen Reagor, Inc. (JRI) purchases a large van for $23,600 to use for its football equipment repair business. JRI estimates a four-year service life and

Jalen Reagor, Inc. (JRI) purchases a large van for $23,600 to use for its football equipment repair business. JRI estimates a four-year service life and a residual value of $2,300 for the van. During the four-year period, the company expects to drive the van 108,000 miles. Calculate annual depreciation for the four-year life of the van using each of the following methods.

1. Straight-line.

2. Double-declining-balance. (Round your depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar.)

3. Actual miles driven each year were 18,000 miles in Year 1; 31,000 miles in Year 2; 23,000 miles in Year 3; and 26,000 miles in Year 4. Note that actual total miles of 98,000 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.)

image text in transcribed
Jalen Reagor , Inc. URI) purchases a large van for $23,600 to use for its football equipment repair business. JRI estimates a four-year service life and a residual value of $2,300 for the van. During the four-year period, the company expects to drive the van 108,000 miles Calculate annual depreciation for the four-year life of the von using each of the following methods 1. Straight line. Dopreciation expense $ 5,325 2. Double-declining balance. (Round your depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar) Year End of Year Amounts Depreciation Accumulated Expense Depreciation $ 50 Book Value 1 2 3 4 Total 5 50 3. Actual miles driven each year were 18,000 miles In Yeart: 31,000 miles in Year 2: 23,000 miles in Year 3; and 26,000 miles in Year 4. Note that actual total miles of 98,000 foil 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 Depreciation Accumulated Expense Depreciation Year Book Value 1 2 3 4 Total

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

Auditing And Society Research On Audit Practice And Regulations

Authors: Wally Smieliauskas, Minlei Ye, Ping Zhang

1st Edition

1138314129, 978-1138314122

More Books

Students also viewed these Accounting questions

Question

=+c. Find or create a visual.

Answered: 1 week ago