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Pa&erson, Inc. purchased a delivery van on January 1, 2024, for $45,000. Pa&erson esEmates that the delivery truck will last for four years and have
Pa&erson, Inc. purchased a delivery van on January 1, 2024, for $45,000. Pa&erson esEmates that the delivery truck will last for four years and have a residual value at the end of the four years of $5,000. During the four years, Pa&erson expects to drive the delivery truck 100,000 miles. Required: Calculate the annual depreciaEon for 2024 and 2025 using each of the following methods. Round all amounts to the nearest dollar. a. Straight-line depreciaEon. b. Double-declining balance depreciaEon. c. AcEvity-based depreciaEon. Assume that Patterson drove the delivery truck for 40,000 miles in 2024 and 46,000 miles in 2025
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