Chubbyville purchases a delivery van for $22,800. Chubbyville estimates that at

Question

Chubbyville purchases a delivery van for $22,800. Chubbyville estimates that at the end of its four-year service life, the van will be worth $2,200. During the four-year period, the company expects to drive the van 106,000 miles.

Straight-line. (Round your depreciation rate to two decimal places, round other intermediate calculations and final answer to the nearest dollar amount. Omit the "$" sign in your response.)

Double-declining-balance. (Round your depreciation rate to two decimal places, round other intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.)

3. Activity-based. Actual miles driven each year were 23,000 miles in Year 1; 30,000 miles in Year 2; 19,000 miles in Year 3; and 27,000 miles in Year 4. Note that actual total miles of 99,000 fall short of expectations by 7,000 miles. Calculate annual depreciation for the four-year life of the van using each of the following methods.

Straight-line. (Round your depreciation rate to two decimal places, round other intermediate calculations and final answer to the nearest dollar amount. Omit the "$" sign in your response.)

Explanation / Answer

Chubbyville purchases a delivery van for $22,800. Chubbyville estimates that at

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