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On January 1, 2024, the Excel Delivery Company purchased a delivery van for $33,300. At the end of its five-year service life, it is
On January 1, 2024, the Excel Delivery Company purchased a delivery van for $33,300. At the end of its five-year service life, it is estimated that the van will be worth $3,000. During the five-year period, the company expects to drive the van 101,000 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods. 3. Units of production using miles driven as a measure of output, and the following actual mileage: Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Answer is complete but not entirely correct. Year Miles Depreciation 2024 22,200 $ 6,660 2025 24,200 7,260 2026 15,200 4,560 2027 21,000 6,300 2028 20,400 6,120 Total 30,900
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