Question
25.
Lilly Dilly Delivery Service purchased a delivery van for $50,000 on 1/1/19. Lilly estimates that the van will have a four-ye
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Solution:

The correct option is '$11,250'.

Explanation:

Straight line = (Purchase Price of Asset - Salvage Value) / Estimated Use Life of Asset

= ($50,000 - $5,000) /4 years

= $45,000/4

=$11,250

Using straight line depreciation, the annual depreciation for 2020 was $11,250.

* If you have any query regarding this question, please ask me.

Add a comment
Know the answer?
Add Answer to:
25. Lilly Dilly Delivery Service purchased a delivery van for $50,000 on 1/1/19. Lilly estimates that...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • On January 1, 2021, the Excel Delivery Company purchased a delivery van for $45,000. At the end of its five-year service...

    On January 1, 2021, the Excel Delivery Company purchased a delivery van for $45,000. At the end of its five-year service life, it is estimated that the van will be worth $4,200. During the five-year period, the company expects to drive the van 136,000 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following method. 1. Units of production using miles driven as a measure of output, and the following actual mileage: (Do...

  • Chubbyville purchases a delivery van for $22,900. Chubbyville estimates a four-year service life and a residual...

    Chubbyville purchases a delivery van for $22,900. Chubbyville estimates a four-year service life and a residual value of $1600. During the four-year period, the company expects to drive the van 106,000 miles. Calculate annual depreclation for the four-year life of the van using each of the following methods. 1. Straight-line Depreciation expense 2 Double-declining-balance. (Round your depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar.) End of Year Amounts Depreciation Accumulated Expense Year Book...

  • On January 1, 2018, the Excel Delivery Company purchased a delivery van for $33,000. At the...

    On January 1, 2018, 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. On January 1, 2018, the Excel Delivery Company purchased a delivery van for $33,000. At the end of its five-year service life, it estimated that the van will be worth $3,000. During the five-year period,...

  • A delivery van that cost $40,000 has an expected service life of 180,000 miles and a...

    A delivery van that cost $40,000 has an expected service life of 180,000 miles and a residual value of $4,000. The van was driven 24,000 miles in the first year and 36,000 miles in the second year. Accumulated depreciation by the end of the second year of the asset's life using the units-of-production method is: $4,800 $12,000 $7,200 All of these answer choices are incorrect.

  • A company purchased a delivery van on January 1, 2016, for $18,600. The van was estimated...

    A company purchased a delivery van on January 1, 2016, for $18,600. The van was estimated to have a useful service life of four years (57,000 miles) and residual value of $1,500. The van was driven 20,500 miles the first year, 16,000 miles the second year, 15,400 miles the third year, and 5,100 miles the fourth year. Determine depreciation expense for each year using the three depreciation methods below. (Round all of the final answers you input to the nearest...

  • On January 1, 2021, the Excel Delivery Company purchased a delivery van for $51,000. At the...

    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 $6,000. During the five-year period, the company expects to drive the van 171,000 miles. Required: Calculate annual depreciation for the five-year life of the van using the Units of production using miles driven as a measure of output, and the following actual mileage: (Do not round intermediate calculations.) X...

  • On January 1, 2018, the Excel Delivery Company purchased a delivery van for $57,000. At the...

    On January 1, 2018, the Excel Delivery Company purchased a delivery van for $57,000. At the end of its five-year service life, it is estimated that the van will be worth $5,400. During the five-year period, the company expects to drive the van 172,000 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods. 1. Straight line. 2. Sum-of-the-years'-digits. 3. Double-declining balance. 4. Units of production using miles driven as a measure...

  • Required information The following information applies to the questions displayed below) Speedy Delivery Company purchases a...

    Required information The following information applies to the questions displayed below) Speedy Delivery Company purchases a delivery van for $34,400. Speedy estimates that at the end of its four-year service life, the van will be worth $5,600. During the four year period, the company expects to drive the van 144,000 miles Actual miles driven each year were 38,000 miles in year 1 and 42,000 miles in year 2 Required: Calculate annual depreciation for the first two years of the van...

  • On January 1, 2021, the Excel Delivery Company purchased a delivery van for $45,000. At the end of its five-year service...

    On January 1, 2021, the Excel Delivery Company purchased a delivery van for $45,000. At the end of its five-year service life, it is estimated that the van will be worth $4,200. During the five-year period, the company expects to drive the van 136,000 miles. Required: Calculate annual depreciation for the five-year life of the van using each of the following methods. 1. Straight line. 2. Double-Declining Balance

  • Required information [The following information applies to the questions displayed below.] Speedy Delivery Company purchases a...

    Speedy Delivery Company purchases a delivery van for $41,600. Speedy estimates that at the end of its four-year service life, the van will be worth $6,000. During the four-year period, the company expects to drive the van 222,500 miles. Actual miles driven each year were 58,000 miles in year 1 and 64,000 miles in year 2.Required:Calculate annual depreciation for the first two years of the van using each of the following methods. (Do not round your intermediate calculations.)

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT