On January 1, 2018, the Excel Delivery Company purchased a delivery van for $33,000. At the end of its five-yearservice life, it is estimated that the van will be worth $3,000. During the five-year period, the company expects todrive the van 100,000 miles.Required:Calculate annual depreciation for the five-year life of the van using each of the following methods. Round allcomputations to the nearest dollar.1. Straight line2. Sum-of-the-years’-digits3. Double-declining balance
On January 1, 2018, the Excel Delivery Company purchased a delivery van for $33,000. At the end of its five-yearservice life, it is estimated that the van will be worth $3,000. During the five-year period, the company expects todrive the van 100,000 miles.Required:Calculate annual depreciation for the five-year life of the van using each of the following methods. Round allcomputations to the nearest dollar.1. Straight line2. Sum-of-the-years’-digits3. Double-declining balance
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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On January 1, 2018, the Excel Delivery Company purchased a delivery van for $33,000. At the end of its five-year
service life, it is estimated that the van will be worth $3,000. During the five-year period, the company expects to
drive the van 100,000 miles.
Required:
Calculate annual
computations to the nearest dollar.
1. Straight line
2. Sum-of-the-years’-digits
3. Double-declining balance
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