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On January 1, 2018, the Excel Delivery Company purchased a delivery van for $51,000. At the end of its five-year service life, it is estimated
On January 1, 2018, the Excel Delivery Company purchased a delivery van for $51,000. At the end of its five-year service life, it is estimated that the van will be worth $4,200. During the five-year period, the company expects to drive the van 100,000 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods.
4. Units of production using miles driven as a measure of output, and the following actual mileage
year | mileage | depreciation |
2018 | 26000 | |
2019 | 28000 | |
2020 | 19000 | |
2021 | 24000 | |
2022 | 25000 | |
Total |
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