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On January 1, 2018, the Excel Delivery Company purchased a delivery van for $117,000. 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 $117,000. At the end of its five-year service life, it is estimated that the van will be worth $12,000. During the five-year period, the company expects to drive the van 350,000 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:
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 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 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 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 Miles Depreciation 40,000 56,000 45,000 40,000 32,000 2020 2021 2022 TotalStep by Step Solution
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