Big City Pizza bought a used Ford delivery van on January 2, 2021, for $21,000....
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Big City Pizza bought a used Ford delivery van on January 2, 2021, for $21,000. The van was expected to remain in service for four years (47,500 miles). At the end of its useful life, Big City management estimated that the van's residual value would be $2,000. The van traveled 15,000 miles the first year, 10,000 miles the second year, 12,500 miles the third year, and 10,000 miles in the fourth year. Read the requirements .... Requirement 1. Prepare schedule of depreciation expense per year for the van under the three depreciation methods. Prepare a schedule of depreciation expense per year for the van under the straight-line method. (Complete all input fields. Enter a 0 for any zero balances.) Year Straight-Line 2021 2022 2023 2024 Total le x Requirements at 1. Prepare a schedule of depreciation expense per year for the van under the three depreciation methods. (For units-of-production and double-declining-balance methods, round to the nearest two decimal places after each step of the calculation.) 2. Which method best tracks the wear and tear on the van? 3. Which method would Big City prefer to use for income tax purposes? Explain your reasoning in detail. Print Done
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