On January 1, 2024, the Excel Delivery Company purchased a delivery van for $33,000. At the...

 

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On January 1, 2024, 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. 3. Units of production using miles driven as a measure of output, and the following actual mileage: Note: Do not round intermediate calculations. Year Miles Depreciation 2024 22,000 $ 6,000 2025 24,000 2026 15,000 2027 20,000 2028 21,000 Total $ 6,000 On January 1, 2024, 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. 3. Units of production using miles driven as a measure of output, and the following actual mileage: Note: Do not round intermediate calculations. Year Miles Depreciation 2024 22,000 $ 6,000 2025 24,000 2026 15,000 2027 20,000 2028 21,000 Total $ 6,000

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To calculate annual depreciation using the units of production method we need to determine the depre... View the full answer