What was depreciation expense of the vehicle

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Reference no: EM133494950

Question: Deacon Industries purchased a delivery vehicle on January 1, 2019, for $30,000. They paid sales taxes of $2,000 and one year's insurance premium of $2,000 on the same day. The company estimated a residual value of $3,000 at the end of the five-year expected service life. Expected usage (in miles) of the new delivery vehicle is as follows:

2019	16,000
2020	22,000
2021	25,000
2022	21,000
2023	16,000

Mileage estimates were based on expected increases in customers and the addition of a second delivery vehicle in 2022.

What was depreciation expense of the vehicle in 2021 under the sum-of-the-years'-digits and double-declining balance depreciation methods, respectively?

Deacon Industries purchased a delivery vehicle on January 1, 2019, for $30,000. They paid sales taxes of $2,000 and one year's insurance premium of $2,000 on the same day. The company estimated a residual value of $3,000 at the end of the five-year expected service life. Expected usage (in miles) of the new delivery vehicle is as follows:

2019	16,000
2020	22,000
2021	25,000
2022	21,000
2023	16,000

Mileage estimates were based on expected increases in customers and the addition of a second delivery vehicle in 2022.

What was depreciation expense of the vehicle in 2021 under the sum-of-the-years'-digits and double-declining balance depreciation methods, respectively?

Reference no: EM133494950

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