Question
Speedy Delivery Company purchases a delivery van for $53,000. Speedy estimates that at the end of its 5 year service life, the van will be
Speedy Delivery Company purchases a delivery van for $53,000. Speedy estimates that at the end of its 5 year service life, the van will be worth $16,500. During the five-year period, the company expects to drive the van 182,500 miles. Actual miles driven each year were 40,000 miles in year 1; 34,000 miles in year 2; 36,000 miles in year 3; 39,000 miles in year 4; and 38,000 miles in year 5. Note that actual total miles of 187,000 exceed expectations by 4,500 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods. (Do not round your intermediate calculations.) 1. Straight-line. 2. Double-declining-balance. 3. Activity-based.
1.Straightline
2. Double-declining-balance.
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2.Double-declining-balance.
2. acrivity based
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