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Mobley purchased a used van for use in its business on January 1, 2020. It paid $11,000 for the van. Mobley expects the van to
Mobley purchased a used van for use in its business on January 1, 2020. It paid $11,000 for the van. Mobley expects the van to have a useful life of four years, with an estimated residual value of $800. Mobley expects to drive the van 18,000 miles during 2020, 22,000 miles during during 2021, 10,000 miles in 2022, and 31,000 in 2023, for total expected miles of 81,600.
Use the Units-of-production method
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