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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: 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 >
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