On January 1, Speedy Delivery Company purchases a delivery van for $40,800. Speedy estimates that at the
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Question:
On January 1, Speedy Delivery Company purchases a delivery van for $40,800. Speedy estimates that at the end of its four-year service life, the van will be worth $5,600. During the four-year period, the company expects to drive the van 176,000 miles.
Actual miles driven each year were 45,000 miles in year 1 and 50,000 miles in year 2.
Required:
Calculate annual depreciation for the first two years using each of the following methods. (Do not round your intermediate calculations.)
1. Straight-line.
2. double declining balance
3. activity-based
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