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Newer, Inc., purchased a delivery van on January 1,2023 , for $36,000. Newer estimates that the delivery truck will last for four years and have
Newer, Inc., purchased a delivery van on January 1,2023 , for $36,000. Newer estimates that the delivery truck will last for four years and have a residual value at the end of the four years of $6,000. During the four years, Newer expects to drive the delivery truck 150,000 miles. Required: Calculate the annual depreciation for 2023 and 2024 using each of the following methods. Round all amounts to the nearest dollar. a. Straight-line depreciation. b. Double-declining balance depreciation. c. Activity-based depreciation. Assume that Newer drove the delivery truck for 40,000 miles in 2023 and 46,000 miles in 2024
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