E 11-1. On January 1, 2011, the Excel Delivery Company purchased a delivery van for $33,000. At the end of its
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.
Units of production using miles driven as a measure of output, and the following actual mileage:
Year Miles
2011 22,000
2012 24,000
2013 15,000
2014 20,000
2015 21,000
