On January 1, 2024, the Excel Delivery Company purchased a delivery van for $34,950. 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 106,500 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods.
On January 1, 2024, the Excel Delivery Company purchased a delivery van for $34,950. 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 106,500 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
On January 1, 2024, the Excel Delivery Company purchased a delivery van for $34,950. 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
106,500 miles.
Required:
Calculate annual depreciation for the five-year life of the van using each of the following methods.
2. Double-declining balance.
Note: Round your answers to the nearest whole dollar amount.
Year
2024
2025
2026
2027
2028
Total
Depreciation](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbd538fa8-26df-4f02-99a2-2faf56ef92ce%2F9dd1b1ac-23f2-4650-9f64-336341ce65dc%2Fiu9ufgd_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
On January 1, 2024, the Excel Delivery Company purchased a delivery van for $34,950. 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
106,500 miles.
Required:
Calculate annual depreciation for the five-year life of the van using each of the following methods.
2. Double-declining balance.
Note: Round your answers to the nearest whole dollar amount.
Year
2024
2025
2026
2027
2028
Total
Depreciation
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