Required information [The following information applies to the questions displayed below.] On January 1, Speedy Delivery Company purchases a delivery van for $32,800. Speedy estimates that at the end of its four-year service life, the van will be worth $4,800. During the four-year period, the company expects to drive the van 175,000 miles. Actual miles driven each year were 45,000 miles in year 1 and 53,000 miles in year 2. Required: Calculate annual depreciation for the first two years using each of the following methods. (Do not round your intermediate calculations.) 2. Double-declining-balance. Year 1 2 Annual Depreciation

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Chapter7: Budgeting
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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 $32,800. Speedy estimates that at the end of its
four-year service life, the van will be worth $4,800. During the four-year period, the company expects to drive the van
175,000 miles.
Actual miles driven each year were 45,000 miles in year 1 and 53,000 miles in year 2.
Required:
Calculate annual depreciation for the first two years using each of the following methods. (Do not round your
intermediate calculations.)
2. Double-declining-balance.
Year
1
2
Annual
Depreciation
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] On January 1, Speedy Delivery Company purchases a delivery van for $32,800. Speedy estimates that at the end of its four-year service life, the van will be worth $4,800. During the four-year period, the company expects to drive the van 175,000 miles. Actual miles driven each year were 45,000 miles in year 1 and 53,000 miles in year 2. Required: Calculate annual depreciation for the first two years using each of the following methods. (Do not round your intermediate calculations.) 2. Double-declining-balance. Year 1 2 Annual Depreciation
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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