January 1, 2024, the Excel Delivery Company purchased a delivery van for $33,000. At the end of its five-year service life, it is estimated that the van will be worth $3,000. During the five-year period, the company expects to drive the van 100,000 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods.   3. Units of production using miles driven as a measure of output, and the following actual mileage: Note: Do not round intermediate calculations. Year           miles           depreciation 2024          22000            6600 2025          24000            7200 2026          15000            4500 2027           20000           6000 2028          21000           _____       and it is not 6300

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, 2024, the Excel Delivery Company purchased a delivery van for $33,000. At the end of its five-year service life, it is estimated that the van will be worth $3,000. During the five-year period, the company expects to drive the van 100,000 miles.

Required:

Calculate annual depreciation for the five-year life of the van using each of the following methods.

 

3. Units of production using miles driven as a measure of output, and the following actual mileage:

Note: Do not round intermediate calculations.

Year           miles           depreciation
2024          22000            6600
2025          24000            7200
2026          15000            4500
2027           20000           6000
2028          21000           _____       and it is not 6300
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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