Letha Enterprises purchased a new van on January 1, 2011, for $35,000. The estimated life of the

Question:

Letha Enterprises purchased a new van on January 1, 2011, for $35,000. The estimated life of the van was four years or 76,000 miles, and its salvage value was estimated to be $3,000. Compute the amount of depreciation expense for 2011, 2012, and 2013 using the following methods:

1. Double-declining-balance

2. 175% declining-balance

3. Sum-of-the-years’-digits

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...