What was the net book value of the vehicle at December

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Question - Deacon Industries purchased a delivery vehicle on January 1, 2019, for $30,000. They paid sales taxes of $2,000 and one year's insurance premium of $2,000 on the same day. The company estimated a residual value of $3,000 at the end of the 5-year expected service life.

Expected usage (in miles) of the new delivery vehicle

2019 16,000

2020 22,000

2021 25,000

2022 21,000

2023 16,000

Mileage estimates were based on expected increases in customers and the addition of a second delivery vehicle in 2022.

What was the net book value of the vehicle at December 31, 2021, under the straight-line and units-of-production depreciation methods, respectively?

A) $12,800; $11,840

B) $13,600; $12,580

C) $15,400: $14,470

D) $13,800; $12,990

E) $14,600; $13,730

Reference no: EM133065437

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