Solution-Calculate annual depreciation for first two years

Calculate annual depreciation for first two years of the van

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Reference no: EM133041357

Problem - Speedy Delivery Company purchases a delivery van for $40,000. Speedy estimates that at the end of its four-year service life, the van will be worth $5,200. During the four-year period, the company expects to drive the van 174,000 miles. Actual miles driven each year were 44,000 miles in year 1 and 52,000 miles in year 2.

Required - Calculate annual depreciation for the first two years of the van using each of the following methods:

1. Straight-line.

2. Double-declining-balance.

3. Activity-based.

Reference no: EM133041357

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Calculate annual depreciation for first two years of the van

Reference no: EM133041357

Reference no: EM133041357

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