Question
Required information Skip to question [The following information applies to the questions displayed below.] On January 1, 2024, the Excel Delivery Company purchased a delivery
Required information
Skip to question
[The following information applies to the questions displayed below.]
On January 1, 2024, the Excel Delivery Company purchased a delivery van for $52,000. At the end of its five-year service life, it is estimated that the van will be worth $4,000. During the five-year period, the company expects to drive the van 166,000 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.
\begin{tabular}{|r|r|r|} \hline Year & Miles & Depreciation \\ \hline 2024 & 12,000 & \\ \hline 2025 & 43,000 & \\ \hline 2026 & 34,000 & \\ \hline 2027 & 39,000 & \\ \hline 2028 & 40,000 & \\ \hline Total & & $ \\ \hline \end{tabular}
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