**Depreciation Calculation Methods for Chubbyville's Delivery Van**Chubbyville purchases a delivery van for $22,500. The van is expected to have a four-year service life and a residual value of $2,000. During this period, the van is expected to be driven 110,000 miles. Calculate the annual depreciation using each of the following methods:1. **Straight-line Method** - *Depreciation Expense*: [Input needed]2. **Double-Declining-Balance Method** - Round your depreciation rate to two decimal places. Round your final answers to the nearest whole dollar. **End of Year Amounts Table:** | Year | Depreciation Expense | Accumulated Depreciation | Book Value | |------|----------------------|--------------------------|------------| | 1 | | | | | 2 | | | | | 3 | | | | | 4 | | | | | **Total** | | | | 3. **Activity-Based Method** - Actual miles driven each year: - Year 1: 19,000 miles - Year 2: 30,000 miles - Year 3: 23,000 miles - Year 4: 26,000 miles - Note that the actual total miles of 98,000 fall short of expectations by 12,000 miles. Calculate the annual depreciation for the four-year life of the van using this method. - Round your depreciation rate to two decimal places.

Depreciation expense is the non-cash expense which is recorded in the books to report the regular…

Answered: Chubbyville purchases a delivery van…

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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