Question
On January 1, 2016, the Excel Delivery Company purchased a delivery van for $33,000. At end of its five-year service life, it is estimated that
On January 1, 2016, the Excel Delivery Company purchased a delivery van for $33,000. At end of its five-year service life, it is estimated that the van will be worth $3,000. During the five-year period, the company expects to drive the van 100,000 miles. Calculate annual depreciation for the five-year lie of the van using each of the following methods. 1. Straight line ____________ per year 2. Sum of the years digits. Year Depreciation 2016 _________ 2017 _________ 2018 _________ 2019 _________ 2020 _________ Total _________ 3. Double-declining balance. Year Depreciation 2016 _________ 2017 _________ 2018 _________ 2019 _________ 2020 _________ Total _________ 4. Double-declining balance. Year Depreciation 2016 _________ 2017 _________ 2018 _________ 2019 _________ 2020 _________ Total _________
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