Chubbyville purchases a delivery van for $22,400. Chubbyville estimates a fouryear service life and a...
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Chubbyville purchases a delivery van for $22,400. Chubbyville estimates a fouryear service life and a residual value of $2,300. During the four-year period, the company expects to drive the van 106,000 miles. Calculate annual depreciation for the four-year life of the van using each of the following methods. 1. Straight-line. 2. Double-declining-balance. (Round your depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar.) 3. Actual miles driven each year were 20,000 miles in Year 1 ; 32,000 miles in Year 2; 23,000 miles in Year 3; and 25,000 miles in Year 4. Note that actual total miles of 100,000 fall short of expectations by 6,000 miles. Calculate annual depreciation for the four-year life of the van using activity-based. (Round your depreciation rate to 2 decimal places.) \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ End of Year Amounts } \\ \hline Year & \begin{tabular}{c} Depreciation \\ Expense \end{tabular} & \begin{tabular}{c} Accumulated \\ Depreciation \end{tabular} & Book Value \\ \hline 1 & & & \\ \hline 2 & & & \\ \hline 3 & & & \\ \hline 4 & & & \\ \hline Total & & & \\ \hline \end{tabular}
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