Exercise 7-11A Determine depreciation under three methods (LO7-4) [The following information applies to the questions displayed below.] Speedy Delivery Company purchases a delivery van for $42,400. Speedy estimates that at the end of its four-year service life, the van will be worth $6,400. During the four-year period, the company expects to drive the van 180,000 miles. Actual miles driven each year were 46,000 miles in year 1 and 50,000 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.) Exercise 7-11A Part 2 2. Double-declining-balance. Annual Year Depreciation 1.

Manderlee Cosmetics purchased a company van for $30.000. The van is expected to have a residual value of $10,000 and useful life of 5 years or 140,000 miles. Calculate the depreciation expense under three the methods Miles driven for each of the five years year 1 25.000 miles year 240,000 miles year 3 50.000 miles year 4 15,000 miles year 5 10.000 miles Year 1 2 3 4 Accounting 1A Chapter 9-Long-Term Assets Depreciation Calculations 5 Total Straight-line Method Depreciation Expense Units of Production Method Double Declining Balance Method

3. Determine the annual depreciation charge and depreciation charge during the 5th year

Required information [The following information applies to the questions displayed below.] Speedy Delivery Company purchases a delivery van for $38,400. Speedy estimates that at the end of its four-year service life, the van will be worth $6,200. During the four-year period, the company expects to drive the van 201,250 miles. Actual miles driven each year were 52,000 miles in year 1 and 58,000 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.) 3. Activity-based. Annual Year Depreciation 1

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Required information [The following information applies to the questions displayed below.] On January 1, 2024, the Excel Delivery Company purchased a delivery van for $52,000. At the end of its five-year service life, it is estimated that the van will be worth $1,000. During the five-year period, the company expects to drive the van 135,000 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods. 1. Straight line. Straight-line 2. Double-declining balance. Note: Round your answers to the nearest whole dollar amount. Year 2024 2025 2026 2027 2028 Total Year 2024 Depreciation 2025 2026 2027 2028 Total $ 3. Units of production using miles driven as a measure of output, and the following actual mileage: Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Miles 0 27,000 29,000 30,000 25,000 26,000 per year Depreciation $ 0

Required information [The following information applies to the questions displayed below.] Speedy Delivery Company purchases a delivery van for $38,400. Speedy estimates that at the end of its four-year service life, the van will be worth $6,200. During the four-year period, the company expects to drive the van 201,250 miles. Actual miles driven each year were 52,000 miles in year 1 and 58,000 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. Annual Year Depreciation 1 2

3 ed Required information [The following information applies to the questions displayed below.] On January 1, Year 1, a company purchased a delivery vehicle for $40,000. At the end of its five-year service life, it is estimated that the vehicle will be worth $4,000. During the five-year period, the company expects to drive the vehicle 121,000 miles. Required: Calculate annual depreciation for the five-year life of the vehicle using each of the following methods. 3. Units of production using miles driven as a measure of output, and the following actual mileage: Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Year Year 1 Year 2 Year 3 Year 4 Year 5 Total Miles 15,000 31,000 22,000 27,000 28,000 Depreciation $ 0