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Suppose Canadian Tire has purchased a van for $41,000 at the beginning of 2016 with an expected useful life of 5 years or 100,000
Suppose Canadian Tire has purchased a van for $41,000 at the beginning of 2016 with an expected useful life of 5 years or 100,000 Km, and its estimated residual value is $1000. If the van is expected to be driven for 20,000km during the first year, 30,000km during the second, 25,000km, 15,000km during the fourth, and 10,000km during the fifth. Calculate the annual depreciation expense (using the 3 forms of depreciation), the balance of accumulated depreciation and the carrying value.
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