3. Chubbyville purchases a delivery van for $22,600. Chubbyville estimates a four-year service life and...
80.2K
Verified Solution
Link Copied!
Question
Accounting
3. Chubbyville purchases a delivery van for $22,600. Chubbyville estimates a four-year service life and a residual value of $1,800. During the four-year period, the company expects to drive the van 110,000 miles. Calculate annual depreciation for the four-year life of the van using each of the following methods.
3a) What is the straight line depreciation expense?
3b) What is the double-declining balance? (Round depreciation rate to 2 decimal places. Round final to nearest whole dollar.)
End of Year Amounts
Year
Depreciation Expense
Accumulated Depreciation
Book Value
1
2
3
4
Total
3c) Actual miles driven each year were 19,000 miles in Year 1; 30,000 miles in Year 2; 23,000 miles in Year 3; and 27,000 miles in Year 4. Note that actual total miles of 99,000 fall short of expectations by 11,000 miles. Calculate annual depreciation for the four-year life of the van using activity-based.
End of Year Amounts
Year
Depreciation Expense
Accumulated Depreciation
Book Value
1
2
3
4
Total
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
