7-11 On January 1, Speedy Delivery Company purchases a delivery van for $90,000. Speedy estimates that at the end of its six-year ervice life, the van will be worth $30,000. During the six-year period, the company expects to drive the van 200,000 miles. Required: Calculate annual depreciation for the first two years using each of the following methods. Round all amounts to the nearest dollar. . Straight-line. . Double-declining-balance. =. Activity-based. Actual miles driven each year were 32.000 miles in year 1 and 35.000 miles in year 2.
7-11 On January 1, Speedy Delivery Company purchases a delivery van for $90,000. Speedy estimates that at the end of its six-year ervice life, the van will be worth $30,000. During the six-year period, the company expects to drive the van 200,000 miles. Required: Calculate annual depreciation for the first two years using each of the following methods. Round all amounts to the nearest dollar. . Straight-line. . Double-declining-balance. =. Activity-based. Actual miles driven each year were 32.000 miles in year 1 and 35.000 miles in year 2.
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 4EB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...
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