On January 1, 2018, the Excel Delivery Company purchased adelivery van for $57,000. At...

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Accounting

On January 1, 2018, the Excel Delivery Company purchased adelivery van for $57,000. At the end of its five-year service life,it is estimated that the van will be worth $5,400. During thefive-year period, the company expects to drive the van 172,000miles.

Required:
Calculate annual depreciation for the five-year life of the vanusing each of the following methods.

1. Straight line.
2. Sum-of-the-years’-digits.
3. Double-declining balance.
4. Units of production using miles driven as ameasure of output, and the following actual mileage:

Answer & Explanation Solved by verified expert

3.8 Ratings (401 Votes)

1 Straight line Depreciation per year Purchase cost Salvage value Useful life 57000 5400 5 years 10320 per year 2 Sumoftheyearsdigits Depreciable amount 57000 5400 51600 Year Depreciable Amount Depreciation See Answer

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In: AccountingOn January 1, 2018, the Excel Delivery Company purchased adelivery van for $57,000. At the...On January 1, 2018, the Excel Delivery Company purchased adelivery van for $57,000. At the end of its five-year service life,it is estimated that the van will be worth $5,400. During thefive-year period, the company expects to drive the van 172,000miles.Required:Calculate annual depreciation for the five-year life of the vanusing each of the following methods.1. Straight line.2. Sum-of-the-years’-digits.3. Double-declining balance.4. Units of production using miles driven as ameasure of output, and the following actual mileage: