Lance Company purchased a delivery van on April 1, 2021. Assume this van was the...
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Lance Company purchased a delivery van on April 1, 2021. Assume this van was the company's only capital asset and that the company uses the half year rule to calculate depreciation expense. The following information is available. The truck was driven 50,000km in 2021. Required: 1. Calculate the depreciation for 2021 under each of the following methods: a. Usage b. Straight-line c. Double-declining balance 2. Create a table and compare the depreciation expense and carrying amount for 2021 under each of these methods. 3. If one of management's objectives is to maximize net income, what method should be adopted
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