Reference no: EM131534068

Question: Each team member is to become an expert on one depreciation method to facilitate teammates' understanding of that method. Follow these procedures:

a. Each team member is to select an area for expertise from one of the following depreciation methods: straight-line, units-of-production, or double-declining-balance.

b. Expert teams are to be formed from those who have selected the same area of expertise. The instructor will identify the location where each expert team meets.

c. Using the following data, expert teams are to collaborate and develop a presentation answering the requirements. Expert team members must write the presentation in a format they can show to their learning teams.
Data and Requirements On January 8, 2009, Waverly Riders purchases a van to transport rafters back to the point of departure at the conclusion of the rafting adventures they operate. The cost of the van is $44,000. It has an estimated salvage value of $2,000 and is expected to be used for four years and driven 60,000 miles. The van is driven 12,000 miles in 2009, 18,000 miles in 2010, 21,000 in 2011, and 10,000 in 2012.

1. Compute the annual depreciation expense for each year of the van's estimated useful life.

2. Explain when and how annual depreciation is recorded.

3. Explain the impact on income of this depreciation method versus others over the van's life.

4. Identify the van's book value for each year of its life and illustrate the reporting of this amount for any one year.

d. Re-form original learning teams. In rotation, experts are to present to their teams the results from part

c. Experts are to encourage and respond to questions.