C Question 1 (of 11) Exercise 11-1 Depreciation methods [LO11-2] On January 1, 2

Question

C Question 1 (of 11) Exercise 11-1 Depreciation methods [LO11-2] On January 1, 2016, 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 150,000 miles Required Calculate annual depreciation for the five-year life of the van using each of the following methods (Do not round intermediate calculations.) 1. Straight line per year 2. Sum-of the-years' digits Year Depreciation 2016 2017 2018 2019 2020 Total

Explanation / Answer

1) Straight line dep = (51000-6000/5) = 9000 per year

2) Sum of year digit :

3) Double decline balance :

d) Unit of production :

Depreciation 2016 45000*5/15 = 15000 2017 45000*4/15 = 12000 2018 45000*3/15 = 9000 2019 45000*2/15 = 6000 2020 45000*1/15 = 3000 Total 45000

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