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. Round your final answers to the nearest whole dollar amount. Answer is complete but not entirely correct. Depreciation 2,895 11,053 11,316 10,000✔ 10,263 X Year 2024 2025 2026 2027 2028 Total Miles 11,000 $ 42,000 43,000 38,000 39,000 $ 45,527
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. Round your final answers to the nearest whole dollar amount. Answer is complete but not entirely correct. Depreciation 2,895 11,053 11,316 10,000✔ 10,263 X Year 2024 2025 2026 2027 2028 Total Miles 11,000 $ 42,000 43,000 38,000 39,000 $ 45,527
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Jay
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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 $51,000. At the end of its five-year service
life, it is estimated that the van will be worth $6,000. During the five-year period, the company expects to drive the van
171,000 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. Round your final answers to the nearest whole dollar amount.
> Answer is complete but not entirely correct.
Year
Miles
Depreciation
2024
11,000 $
2025
42,000
2026
43,000
2027
38,000
2028
39,000
Total
$
2,895✔
11,053
11,316
10,000
10,263
45,527](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F866b0b59-fe6b-4b6c-82c8-119f4562b36b%2F565c4fcf-f773-4491-a010-4a88650f1538%2F9gufd8p_processed.jpeg&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 $51,000. At the end of its five-year service
life, it is estimated that the van will be worth $6,000. During the five-year period, the company expects to drive the van
171,000 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. Round your final answers to the nearest whole dollar amount.
> Answer is complete but not entirely correct.
Year
Miles
Depreciation
2024
11,000 $
2025
42,000
2026
43,000
2027
38,000
2028
39,000
Total
$
2,895✔
11,053
11,316
10,000
10,263
45,527
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