Question
On January 1, 2021, the Excel Delivery Company purchased a delivery van for $53,000. At the end of its five-year service life, it is estimated
On January 1, 2021, the Excel Delivery Company purchased a delivery van for $53,000. 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 150,000 miles. 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:
Year Miles Depreciation
2021 28,000
2022 30,000
2023 41,000
2024 26,000
2025 27,000
Total
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Intermediate Accounting IFRS
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
3rd edition
1119372933, 978-1119372936
