On January 1, 2021, the Excel Delivery Company purchased a delivery van for $33,000. At the end
Question:
On January 1, 2021, the Excel Delivery Company purchased a delivery van for $33,000. At the end of its five-year service life, it is estimated that the van will be worth $3,000. During the five-year period, the company expects to drive the van 100,000 miles.
Required:
Calculate annual depreciation for the five-year life of the van using each of the following methods. Round all computations to the nearest dollar.
1. Straight line
2. Double-declining balance
3. Units of production using miles driven as a measure of output, and the following actual mileage:
Year ...................Miles
2021 ..................22,000
2022 ..................24,000
2023 ..................15,000
2024 ..................20,000
2025 ..................21,000
Step by Step Answer:
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas