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7-11 On January 1, Speedy Delivery Company purchases a delivery van for $90,000. Speedy estimates that at the end of its six-year ervice life, the van will be worth $30,000. During the six-year period, the company expects to drive the van 200,000 miles. Required: Calculate annual depreciation for the first two years using each of the following methods. Round all amounts to the nearest dollar. . Straight-line. . Double-declining-balance. =. Activity-based. Actual miles driven each year were 32.000 miles in year 1 and 35.000 miles in year 2.

7-11 On January 1, Speedy Delivery Company purchases a delivery van for $90,000. Speedy estimates that at the end of its six-year ervice life, the van will be worth $30,000. During the six-year period, the company expects to drive the van 200,000 miles. Required: Calculate annual depreciation for the first two years using each of the following methods. Round all amounts to the nearest dollar. . Straight-line. . Double-declining-balance. =. Activity-based. Actual miles driven each year were 32.000 miles in year 1 and 35.000 miles in year 2.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E7-11 On January 1, Speedy Delivery Company purchases a delivery van for $90,000. Speedy estimates that at the end of its six-year service life, the van will be worth $30,000. During the six-year period, the company expects to drive the van 200,000 miles. Required: Calculate annual depreciation for the first two years using each of the following methods. Round all amounts to the nearest dollar. 1. Straight-line. 2. Double-declining-balance. 3. Activity-based. Actual miles driven each year were 32,000 miles in year 1 and 35,000 miles in year 2.
Transcribed Image Text:E7-11 On January 1, Speedy Delivery Company purchases a delivery van for $90,000. Speedy estimates that at the end of its six-year service life, the van will be worth $30,000. During the six-year period, the company expects to drive the van 200,000 miles. Required: Calculate annual depreciation for the first two years using each of the following methods. Round all amounts to the nearest dollar. 1. Straight-line. 2. Double-declining-balance. 3. Activity-based. Actual miles driven each year were 32,000 miles in year 1 and 35,000 miles in year 2.
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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