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Straight line and double declining help needed Chubbyville purchases a delivery van for $24,000. Chubbyville estimates a four-year service life and a residual value of
Straight line and double declining help needed
Chubbyville purchases a delivery van for $24,000. Chubbyville estimates a four-year service life and a residual value of $1,600. During the four-year period, the company expects to drive the van 109,000 miles. Calculate annual depreciation for the four-year life of the van using each of the following methods. 1. Straight-line. Depreciation expense 2. Double-declining-balance. (Round your depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar.) Year End of Year Amounts Depreciation Deprecia Accumulated Expense Depreciation Book Value Total $ 0 3. Actual miles driven each year were 19,000 miles in Year 1; 30,000 miles in Year 2; 23,000 miles in Year 3; and 24,000 miles in Year 4. Note that actual total miles of 96,000 fall short of expectations by 13,000 miles. Calculate annual depreciation for the four-year life of the van using activity-based. (Round your depreciation rate to 2 decimal places.) End of Year Amounts Depreciation Accumulated Expense Depreciation Year Book Value 1 3 Total $Step by Step Solution
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