Flower Power, Inc purchases a van for making deliveries for $24,800. The company estimates a four-year service life and a residual value of $1,600. During the four-year period, the company expects to drive the van 110,000 miles. Calculate annual depreciation for the four-year life of the van using each of the following methods. 1. Straight-line. Depreciation expense 2. Double-declining-balance. (Round your depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar.) End of Year Amounts Depreciation Accumulated Year Book Value Expense Depreciation 3 4 Total 3. Actual miles driven each year were 18,000 miles in Year 1; 32,000 miles in Year 2; 21,000 miles in Year 3; and 25,000 miles in Year 4. Note that actual total miles of 96,000 fall short of expectations by 14,000 miles. Calculate annual depreciation for the four-year life of the van using activity-based. (Round your depreciation rate to 2 decimal places.) End of Year Amounts Year Depreciation Accumulated Expense Depreciation Book Value 3 4. Total

Flower Power, Inc purchases a van for making deliveries for $24,800. The company estimates a four-year service life and a residual value of $1,600. During the four-year period, the company expects to drive the van 110,000 miles. Calculate annual depreciation for the four-year life of the van using each of the following methods. 1. Straight-line. Depreciation expense 2. Double-declining-balance. (Round your depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar.) End of Year Amounts Depreciation Accumulated Year Book Value Expense Depreciation 3 4 Total 3. Actual miles driven each year were 18,000 miles in Year 1; 32,000 miles in Year 2; 21,000 miles in Year 3; and 25,000 miles in Year 4. Note that actual total miles of 96,000 fall short of expectations by 14,000 miles. Calculate annual depreciation for the four-year life of the van using activity-based. (Round your depreciation rate to 2 decimal places.) End of Year Amounts Year Depreciation Accumulated Expense Depreciation Book Value 3 4. Total

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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