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mash [69]
3 years ago
11

Double-declining balance On January 1, 2021, the Excel Delivery Company purchased a delivery van for $51,000. At the end of its

five-year service life, it is estimated that the van will be worth $4,800. During the five-year period, the company expects to drive the van 154,000 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods.
Business
1 answer:
agasfer [191]3 years ago
3 0

Answer:

$18,480

Explanation:

Cost of van = $51,000

Useful life = 5 years

Salvage value = $4,800

Using the straight line, Annual depreciation

= (51000 - 4800)/5

= $9,240

Using the Double-declining balance method,

Annual depreciation = 2 × 9,240

                                  = $18,480

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