Straight-line and double-declining-balance

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Reference no: EM131268003

Chubbyville purchases a delivery van for $23,500. Chubbyville estimates a four-year service life and a residual value of $2,300. During the four-year period, the company expects to drive the van 108,000 miles.

1. Straight-line.

2. Double-declining-balance. (Round your depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar.)

3. Actual miles driven each year were 22,000 miles in Year 1; 23,000 miles in Year 2; 20,000 miles in Year 3; and 26,000 miles in Year 4. Note that actual total miles of 91,000 fall short of expectations by 17,000 miles. Calculate annual depreciation for the four-year life of the van using activity-based. (Round your final answers to the nearest whole dollar.)

Reference no: EM131268003

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Straight-line and double-declining-balance : Chubbyville purchases a delivery van for $23,500. Chubbyville estimates a four-year service life and a residual value of $2,300. During the four-year period, the company expects to drive the van 108,000 miles. Straight-line. Double-declining-balance...

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