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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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