Exercises

$11-1$ Depreciation methods

L$011-2$

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.

Requirad:

Calculate annual depreciation for the five$-$year life of the van using each of the following methods. Round all computations to the nearest dollar.

Straight line

Double$-$declining balance

Units of production using niles driven as a measure of output, and the following actual mileage:

$\backslash$table$[[$Year$,$Miles$],[2021,22,000],[2022,24,000],[2023,15,000],[2024,20,000],[2025,21,000]]$