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On January 1, 2018, the Excel Delivery Company purchased a delivery van for $141,000. 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 $141,000. At the end of its five-year service life, it is estimated that the van will be worth $14,400. During the five-year period, the company expects to drive the van 422,000 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods. 1. Straight line. 2. Sum-of-the-years-digits. 3. Double-declining balance. 4. Units of production using miles driven as a measure of output, and the following actual mileage:
Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate annual depreciation for the five-year life of the van using straight line method. Straight-line per year Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate annual depreciation for the five-year life of the van using sum-of-the-years' digits. (Do not round your intermediate calculations.) Depreciation Year 2018 2019 2020 2021 2022 Total Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate annual depreciation for the five-year life of the van using double-declining balance. (Do not round your intermediate calculations and round your final answers to nearest whole dollar.) Depreciation Year 2018 2019 2020 2021 2022 Total Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate annual depreciation for the five-year life of the van using units of production using miles driven as a measure of output, and the following actual mileage. (Do not round your intermediate calculations.) Year 2018 2019 2020 2021 2022 Total Miles Depreciation 92,840 101,280 63,300 84,400 88,620
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