Speedy Delivery Company purchases a delivery van for $40,800. Speedy estimates that at the end of its four-year service life,

4 answers
Question:

Speedy Delivery Company purchases a delivery van for $40,800. Speedy estimates that at the end of its four-year service life, the van will be worth $5,600. During the four-year period, the company expects to drive the van 176,000 miles. Actual miles driven each year were 45,000 miles in year 1 and 50,000 miles in year 2. Calculate annual depreciation for the first two years of the van using each of the following methods. (Do not round your intermediate calculations.) 1. Straight-line. Annual Depreciation Year 2 Doublo-declining-balance Annual Depreciation Year 3. Activity-based. Annual Depreciation Year

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