Question
On January 1, 2018, the Excel Delivery Company purchased a delivery van for $41,000. 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 $41,000. At the end of its five-year service life, it is estimated that the van will be worth $5,000. 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. . 3. Double-declining balance. 4. Units of production using miles driven as a measure of output, and the following actual mileage:
3. Year Depreciation
2018
2019
2020
2021
2022
4. Year Miles Depreciation 2018 12,000
2019 32,000
2020 23,000
2021 28,000
2022 29,000
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