Chubbyville purchases a delivery van for $22.500. Chubbyville estimates a four-year service life and a...
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Chubbyville purchases a delivery van for $22.500. Chubbyville estimates a four-year service life and a residual value of $1700. During the four-year period, the company expects to drive the van 107,000 miles. Calculate annual depreciation for the four-year life of the van using each of the following methods. 1. Straight-line. Depreciation expense 2. Double-declining balance. (Round your depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar.) End of Year Amounts Depreciation Accumulated Expense Depreciation Year Book Value 1 2 3 4 Total 3. Actual miles driven each year were 20,000 miles in Year 1:32,000 miles in Year 2: 22,000 miles in Year 3; and 25,000 miles in Year 4. Note that actual total miles of 99,000 fall short of expectations by 8,000 miles Calculate annual depreciation for the four-year life of the van using activity-based. (Round your depreciation rate to 2 decimal places.) Year End of Year Amounts Depreciation Accumulated Expense Depreciation Book Value 1 2 3 Total
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