Question: please help with #3 Chubbyville purchases a delivery van for $23,300, Chubbyville estimates a four-year service life and a residual value of $1,500. During the
Chubbyville purchases a delivery van for $23,300, Chubbyville estimates a four-year service life and a residual value of $1,500. During the four-year period, the company expects to drive the van 106,000 miles. Calculate annual depreciation for the four-year life of the van using each of the following methods. 1. Straight-line Depreciabon experto $ 5.450 2. Double-declining balance. (Round your depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar) Year 1 2 End of Your Amounts Depreciation Accumulated Expanse Depreciation Book Value 5 11,650 $ 11,650 $ 11,650 5,825 17.475 5,825 2,913 20,388 2.913 1,413 21.792 1.500 $ 21,801 3 4 Total 3. Actual miles driven each year were 18,000 miles in Year 30,000 miles in Year 2: 22,000 miles in Year 3 and 26,000 miles in Year 4 Note that actual total miles of 96,000 fall short of expectations by 10,000 miles Calculate annual depreciation for the four year life of the von using activity-based. (Round your depreciation rate to 2 decimal places) End of Year Amounts Depreciation Accumulated Espam Depreciation Book Valu Year 1 2 3 4 TE 5
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