Speedy Delivery Company purchases a delivery van for $31,200. Speedy estimates that at the end of its four-year service life, the van will be worth $5,600. During the four-year period, the company expects to drive the van 128,000 miles. Actual miles driven each year were 35,000 miles in year 1 and 39,000 miles in year 2. Required: Calculate annual depreciation for the first two years of the van using each of the following methods. (Do not round your intermediate calculations.) 1. Straight-line. Year 1 2 2. Double-declining-balance. Year 1 2 3. Activity-based. Year 1 2 Annual Depreciation Annual Depreciation Annual Depreciation
Speedy Delivery Company purchases a delivery van for $31,200. Speedy estimates that at the end of its four-year service life, the van will be worth $5,600. During the four-year period, the company expects to drive the van 128,000 miles. Actual miles driven each year were 35,000 miles in year 1 and 39,000 miles in year 2. Required: Calculate annual depreciation for the first two years of the van using each of the following methods. (Do not round your intermediate calculations.) 1. Straight-line. Year 1 2 2. Double-declining-balance. Year 1 2 3. Activity-based. Year 1 2 Annual Depreciation Annual Depreciation Annual Depreciation
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Speedy Delivery Company purchases a delivery van for $31,200. Speedy estimates that at the end of its four-year service life, the van
will be worth $5,600. During the four-year period, the company expects to drive the van 128,000 miles.
Actual miles driven each year were 35,000 miles in year 1 and 39,000 miles in year 2.
Required:
Calculate annual depreciation for the first two years of the van using each of the following methods. (Do not round your intermediate
calculations.)
1. Straight-line.
Year
1
2
2. Double-declining-balance.
Year
1
2
3. Activity-based.
Year
1
2
Annual Depreciation
Annual Depreciation
Annual Depreciation
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