Question

Chapter 11 Homeowrk Saved Help Save & Exit Submit Check my work Part 2 of 3 Required information [The following information applies to the questions displayed below.) 10 points On January 1, 2021, 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. eBook Required: Calculate annual depreciation for the five-year life of the van using each of the following methods. Hint 2. Double-declining balance. (Round your answers to the nearest whole dollar amount.) References Depreciation Year 2021 2022 2023 2024 2025 Total Homepage - Erskine College

Answer 1

Aniwen Double Declining Balance Depreciation method is method where depreciation to an asset moves faster in early and slows down 19 last years of useful life of an asset. Double Declining @qlance method of depreciation method is an accelerated form of depreciation Under Double Declining Balance Depreciation Method, Depreciation is calculated by the asset book value at the beginning of each year multiplied by the double declining rate of Depreciation. Double Declining - [2 x Straight line Depreciation Rate] X 100 Rate of Depreciation - In the given question, it is given that Cost of a delivery van $ 3000 Salugge Valye $ 3000 Useful Life 5 years. Double Oedining Rate of Deprecian 12 x Straight line Depreyhon Rate] X ** 2 X Shaight line Depkt 114 - [ 2x Useful Lise of Blivery to ]x" = [2 x $'yers] *i** = (2x 0.20 X 100 • 40% Calculation of Annual Depreciation of Excel Delivery Company under Double Declining Balance for five years Year / Begining Book Ocable Declining T clining nepreciation Ending Book Value | Blad (t of Deprechen 1-6X) = (C- 13200 40% 2021 19800 - 40% 7920 11880 4752 7128 3 2013 11880 2851 4277 4 2014 1277 3000 value 32 000 2012 19800 44 7128 40% 40% [5/2015| 4277

:: Depreciation under Double Declining Belgace Year 2021 Depreciation Expense 13200 7920 4752 2012 2023 2024 285] 2025 1277 30000 Total