Question
You Purchase a van for $50,000. You estimate the van to last 4 years and to have a salvage value of $10,000. You also estimate
You Purchase a van for $50,000. You estimate the van to last 4 years and to have a salvage value of $10,000. You also estimate to operate the van for 200,000 miles. During the first year you drive the van 70,000 miles. What is the depreciation expense for year 1 using the straight line method of depreciation?
Answer:
You Purchase a van for $50,000. You estimate the van to last 4 years and to have a salvage value of $10,000. You also estimate to operate the van for 200,000 miles. During the first year you drive the van 70,000 miles. What is the depreciation expense for year 1 using the Units of Production method of depreciation?
Answer:
You Purchase a van for $50,000. You estimate the van to last 4 years and to have a salvage value of $10,000. You also estimate to operate the van for 200,000 miles. During the first year you drive the van 70,000 miles. What is the depreciation expense for year 1 using the Double Declining Balance method of depreciation?
Answer:
Match the correct Double Declining Balance Rates with the correct estimated life spans.
10 Years | Answer 1Choose...100 %20 %10 %50 %40 % |
5 Years | Answer 2Choose...100 %20 %10 %50 %40 % |
4 Years | Answer 3Choose...100 %20 %10 %50 %40 % |
2 Years | Answer 4Choose...100 %20 %10 %50 %40 % |
20 Years | Answer 5
|
(All of them go from 10,20, 40, 50 ,100%)
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