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Business, 30.06.2020 18:01 trinityine
Speedy Delivery Company purchases a delivery van for $40,000. Speedy estimates that at the end of its four-year service life, the van will be worth $5,200. During the four-year period, the company expects to drive the van 174,000 miles. Actual miles driven each year were 44,000 miles in year 1 and 52,000 miles in year 2.
Required:
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.
2. Double-declining-balance.
3. Activity-based.
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Speedy Delivery Company purchases a delivery van for $40,000. Speedy estimates that at the end of it...
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