Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 3. chubbyville purchases a delivery van for $22,60

3. Chubbyville purchases a delivery van for $22,600. Chubbyville estimates a four-year service life and...

80.2K

Verified Solution

Question

Accounting

3. Chubbyville purchases a delivery van for $22,600. Chubbyville estimates a four-year service life and a residual value of $1,800. During the four-year period, the company expects to drive the van 110,000 miles. Calculate annual depreciation for the four-year life of the van using each of the following methods.

3a) What is the straight line depreciation expense?

3b) What is the double-declining balance? (Round depreciation rate to 2 decimal places. Round final to nearest whole dollar.)

End of Year Amounts
Year Depreciation Expense Accumulated Depreciation Book Value
1
2
3
4
Total

3c) Actual miles driven each year were 19,000 miles in Year 1; 30,000 miles in Year 2; 23,000 miles in Year 3; and 27,000 miles in Year 4. Note that actual total miles of 99,000 fall short of expectations by 11,000 miles. Calculate annual depreciation for the four-year life of the van using activity-based.

End of Year Amounts
Year Depreciation Expense Accumulated Depreciation Book Value
1
2
3
4
Total

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

When we observe interest rates in the financial press, do we see nominal or real rates?...

Chemistry
1.2K views

pH Dependence of Drug Absorption lab 1. Calculate the amount of Na2HPO4 * 7H2O ( in grams)...

Civil Engineering
1.2K views

Please define streamline, streakline, and pathline (illustrations welcome):

Physics
1.2K views

16 A galvanometer has constant 10 A deflection a current of 1 A pass through...

Basic Math
1.2K views

A 3 1 2 4 25 1 6 3 1 a basket method 6 Minors...

Algebra
1.2K views

solve the point a and b, by the bisection methodx? +11x? +33x 11x +33x...

Accounting
1.2K views

Beale Management has an unfunded retiree health care plan. At the end of 2022, the...

Accounting
1.2K views

QUESTION 21 Since FUTA tax is paid only once a quarter, the FUTA tax expense...

Accounting
1.2K views

Question #4 On May 1, 2020, Clark Inc. acquired 1,250 shares of Mayson Ltd. for...

Accounting
1.2K views

Marwick's Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $1,491 per...

Finance
1.2K views

You are considering to form a portfolio that includes stock ABC and stock XYZ. To...

Accounting
1.2K views

How has the FASB (and the SEC) addressed the contention that small firms incur significantly...