Question
On January 2, 2017, Chair King Co. purchased a new van for $45,000. The van had an expected useful life of six years, and an
On January 2, 2017, Chair King Co. purchased a new van for $45,000. The van had an expected useful life of six years, and an expected salvage value of $15,000. The company expected that in those six years, the van would be driven for 150,000 miles based on the following schedule:
2017 13,000 miles
2018 21,000 miles
2019 28,000 miles
2020 29,000 miles
2021 37,000 miles
2022 22,000 miles
Required:
Assuming a December 31 year-end, prepare a depreciation schedule for the life of the van using:
Straight-line depreciation
Units-of-production depreciation
Double-declining-balance depreciation
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