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A company purchases a delivery van for $23,000. The van is estimated to have a four-year service life and a residual value of $2,100. During the four-year period, the company expects to drive the van 110,000 miles. Required: Calculate annual depreciation for the four-year life of the van using each of the following methods. 1. Straight-line 2. Double-declining-balance 3. Activity-based (Actual miles driven each year were 19,000 miles in Year 1; 29,000 miles in Year 2; 23,000 miles in Year 3; and 26,000 miles in Year 4. Note that actual total miles of 97,000 fall short of expectations by 13,000 miles.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate annual depreciation for the four-year life of the van using the activity-based method. (Round your depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar.) Year 1 2 3 4 Total Required 3 End of Year Amounts Depreciation Accumulated Expense Depreciation Book Value

A company purchases a delivery van for $23,000. The van is estimated to have a four-year service life and a residual value of $2,100. During the four-year period, the company expects to drive the van 110,000 miles. Required: Calculate annual depreciation for the four-year life of the van using each of the following methods. 1. Straight-line 2. Double-declining-balance 3. Activity-based (Actual miles driven each year were 19,000 miles in Year 1; 29,000 miles in Year 2; 23,000 miles in Year 3; and 26,000 miles in Year 4. Note that actual total miles of 97,000 fall short of expectations by 13,000 miles.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate annual depreciation for the four-year life of the van using the activity-based method. (Round your depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar.) Year 1 2 3 4 Total Required 3 End of Year Amounts Depreciation Accumulated Expense Depreciation Book Value

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A company purchases a delivery van for $23,000. The van is estimated to have a four-year service life and During the four-year period, the company expects to drive the van 110,000 miles. Required: Calculate annual depreciation for the four-year life of the van using each of the following methods. 1. Straight-line 2. Double-declining-balance 3. Activity-based (Actual miles driven each year were 19,000 miles in Year 1; 29,000 miles in Year 2; 23,000 miles in Year 3; and 26,000 miles in Year 4. Note that actual total miles of 97,000 fall short of expectations by 13,000 miles.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Year 1 2 3 4 Total Calculate annual depreciation for the four-year life of the van using the activity-based method. (Round your depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar.) residual value of $2,100. End of Year Amounts Depreciation Accumulated Expense Depreciation Book Value
Transcribed Image Text:A company purchases a delivery van for $23,000. The van is estimated to have a four-year service life and During the four-year period, the company expects to drive the van 110,000 miles. Required: Calculate annual depreciation for the four-year life of the van using each of the following methods. 1. Straight-line 2. Double-declining-balance 3. Activity-based (Actual miles driven each year were 19,000 miles in Year 1; 29,000 miles in Year 2; 23,000 miles in Year 3; and 26,000 miles in Year 4. Note that actual total miles of 97,000 fall short of expectations by 13,000 miles.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Year 1 2 3 4 Total Calculate annual depreciation for the four-year life of the van using the activity-based method. (Round your depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar.) residual value of $2,100. End of Year Amounts Depreciation Accumulated Expense Depreciation Book Value
A company purchases a delivery van for $23,000. The van is estimated to have a four-year service life and a residual value of $2,100. During the four-year period, the company expects to drive the van 110,000 miles. Required: Calculate annual depreciation for the four-year life of the van using each of the following methods. 1. Straight-line 2. Double-declining-balance 3. Activity-based (Actual miles driven each year were 19,000 miles in Year 1; 29,000 miles in Year 2; 23,000 miles in Year 3; and 26,000 miles in Year 4. Note that actual total miles of 97,000 fall short of expectations by 13,000 miles.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate annual depreciation for the four-year life of the van using the straight-line method. (Round your final answers to the nearest whole dollar.) Depreciation expense Required 3 A company purchases a delivery van for $23,000. The van is estimated to have a four-year service life and a residual value of $2,100. During the four-year period, the company expects to drive the van 110,000 miles. < Required 1 Required: Calculate annual depreciation for the four-year life of the van using each of the following methods. Required 1 Required 2 1. Straight-line 2. Double-declining-balance 3. Activity-based (Actual miles driven each year were 19,000 miles in Year 1; 29,000 miles in Year 2; 23,000 miles in Year 3; and 26,000 miles in Year 4. Note that actual total miles of 97,000 fall short of expectations by 13,000 miles.) Required 2 > Complete this question by entering your answers in the tabs below. Year 1 2 3 4 Total Required 3 Calculate annual depreciation for the four-year life of the van using the double-declining-balance method. (Round your depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar.) End of Year Amounts Depreciation Accumulated Book Value Expense Depreciation
Transcribed Image Text:A company purchases a delivery van for $23,000. The van is estimated to have a four-year service life and a residual value of $2,100. During the four-year period, the company expects to drive the van 110,000 miles. Required: Calculate annual depreciation for the four-year life of the van using each of the following methods. 1. Straight-line 2. Double-declining-balance 3. Activity-based (Actual miles driven each year were 19,000 miles in Year 1; 29,000 miles in Year 2; 23,000 miles in Year 3; and 26,000 miles in Year 4. Note that actual total miles of 97,000 fall short of expectations by 13,000 miles.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate annual depreciation for the four-year life of the van using the straight-line method. (Round your final answers to the nearest whole dollar.) Depreciation expense Required 3 A company purchases a delivery van for $23,000. The van is estimated to have a four-year service life and a residual value of $2,100. During the four-year period, the company expects to drive the van 110,000 miles. < Required 1 Required: Calculate annual depreciation for the four-year life of the van using each of the following methods. Required 1 Required 2 1. Straight-line 2. Double-declining-balance 3. Activity-based (Actual miles driven each year were 19,000 miles in Year 1; 29,000 miles in Year 2; 23,000 miles in Year 3; and 26,000 miles in Year 4. Note that actual total miles of 97,000 fall short of expectations by 13,000 miles.) Required 2 > Complete this question by entering your answers in the tabs below. Year 1 2 3 4 Total Required 3 Calculate annual depreciation for the four-year life of the van using the double-declining-balance method. (Round your depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar.) End of Year Amounts Depreciation Accumulated Book Value Expense Depreciation
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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