On January 1, Speedy Delivery Company purchases a delivery van for $33,600. Speedy estimates that at the four-year service life, the van will be worth $5,200. During the four-year period, the company expects to drive 177,500 miles. Actual miles driven each year were 46,000 miles in year 1 and 51,000 miles in year 2.
On January 1, Speedy Delivery Company purchases a delivery van for $33,600. Speedy estimates that at the four-year service life, the van will be worth $5,200. During the four-year period, the company expects to drive 177,500 miles. Actual miles driven each year were 46,000 miles in year 1 and 51,000 miles in year 2.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, Speedy Delivery Company purchases a delivery van for $33,600. Speedy estimates that at the end of its
four-year service life, the van will be worth $5,200. During the four-year period, the company expects to drive the van
177,500 miles.
Actual miles driven each year were 46,000 miles in year 1 and 51,000 miles in year 2.
Required:
Calculate annual depreciation for the first two years using each of the following methods.
Note: Do not round your intermediate calculations.
2. Double-declining-balance.
Year
1
2
Annual
Depreciation](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff528cbe5-8563-4fa3-8e30-57f8892c986e%2F5f2857b0-e6ce-4c3c-ab24-9609309ccd2d%2Ffay44r_processed.jpeg&w=3840&q=75)
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Required information
[The following information applies to the questions displayed below.]
On January 1, Speedy Delivery Company purchases a delivery van for $33,600. Speedy estimates that at the end of its
four-year service life, the van will be worth $5,200. During the four-year period, the company expects to drive the van
177,500 miles.
Actual miles driven each year were 46,000 miles in year 1 and 51,000 miles in year 2.
Required:
Calculate annual depreciation for the first two years using each of the following methods.
Note: Do not round your intermediate calculations.
2. Double-declining-balance.
Year
1
2
Annual
Depreciation
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