Flowerworks Corporation purchases a vehicle for $32,000 to deliver flowers to the surrounding community. Flowerworks estimates...

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Flowerworks Corporation purchases a vehicle for $32,000 to deliver flowers to the surrounding community. Flowerworks estimates that at the end of its four-year useful life, the delivery vehicle will be worth $6,000. During the four-year period, the company plans to drive the vehicle 130,000 miles. Actual miles driven each year were 35,000 miles in year 1 and 38,000 miles in year 2. Required: Calculate annual depreciation for the first two years of the vehicie using each of the following methods. (Do not round your intermediate calculations.) 1. Straight-line. Annual Year Depreciation 6,500 $4 6,500 2. Double-declining-balance. Annual Depreciation Year 2 3. Activity-based. Annual Year Depreciation 1 2 Flowerworks Corporation purchases a vehicle for $32,000 to deliver flowers to the surrounding community. Flowerworks estimates that at the end of its four-year useful life, the delivery vehicle will be worth $6,000. During the four-year period, the company plans to drive the vehicle 130,000 miles. Actual miles driven each year were 35,000 miles in year 1 and 38,000 miles in year 2. Required: Calculate annual depreciation for the first two years of the vehicie using each of the following methods. (Do not round your intermediate calculations.) 1. Straight-line. Annual Year Depreciation 6,500 $4 6,500 2. Double-declining-balance. Annual Depreciation Year 2 3. Activity-based. Annual Year Depreciation 1 2

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Answer Explanation Purchase cost of vehicle 32000 Val... View the full answer