Question

% 57-11 (similar to) s Question Help Lovell purchased a used van for use in its business on January 1, 2017. It paid $15,000 for the van. Lovell expects the van to have a useful life of four years, with an estimated residual value of $1,200. Lovell expects to drive the van 40,000 miles during 2017, 16,000 miles during 2018, 33,000 miles in 2019, and 3,000 miles in 2020, for total expected miles of 92,000. Read the requirements. (Complete all answer boxes. Enter a "0" for any zero values. Use three decimal places for the depreciation cost per mile.) Units-of-production method Annual Depreciation Expense Accumulated Depreciation Year Book Value Start 2017 2018 2019 2020

Answer 1

Cost of the Van 15000 Less: salvage Value 1200 Depreciatble Value 13800 Estmated Life 92000 Units f Prodcution Method Annual Depreciation : Depreciable Value / Life Depreciation Per unit : 13800/92000 0.150 Year Units Rate Depreciation 2017 40000 0.15 6000 2018 16000 0.15 2400 2019 33000 0.15 4950 2020 3000 0.15 450 Answers Depreciation Accumulated Year Expenses Depreciation Book Value Start 15000 2017 6000 6000 9000 2018 2400 8400 6600 2019 4950 13350 1650 2020 450 13800 1200