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On January 1, 2011, the Excel Delivery Company purchased a delivery van for $33,000. At the end of its five-year service life, it is estimated that the van will be worth $3,000. During the five-year period, the company expects to drive the van 100,000 miles.
Required:
Calculate annual depreciation for the five-year life of the van using each of the following methods. Round all computations to the nearest dollar.
1. Straight line.2. Sum-of-the-years' digits.3. Double-declining balance.4. Units of production using miles driven as a measure of output, and the following actual mileage:Year Miles2011 ......... 22,0002012 ......... 24,0002013 ......... 15,0002014 ......... 20,0002015 ......... 21,000
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