Score: 0.53 of 2 pts Score: 60.26%, 6.03 of 10 pts E7-25A (similar to) g City Pi

Question

Score: 0.53 of 2 pts Score: 60.26%, 6.03 of 10 pts E7-25A (similar to) g City Pizza bought a uned Toyota delivery van on Jeruany 22016, for 21,000 Tho van was expected to romain in service for four years (47.500 milas) Al the end of ts seu ie, Big Cityoffials estimatod ua e vans residual value wouild be $2.000. The van traveled 16,000 mles the rt yea, 10,000 miles the seoond year, 12,500 mles the thind yow, and 10,000 mles in the fourth yoar 1·Prepare a scheie of depraation opense year for the van under the mee depreoaton metod" 2. Which method best tracks the wear and tear on the van? Which method wouls Big City prefer to use for income tax purposes? Explain in dota hy Big City would prefor this method methods, round to the nearest two decimal places ather each step of he caloulation For years with So depreciation, make sure to enber 0 in the appropriate column) Units-of Straight-Line Production 2016 4,750 4,750 4,750 2017 2019 . 3 Clear All

Explanation / Answer

Prepare depreciation schedule :

Dep rate = (21000-2000)/47500 = 0.4 per mile

Year Straight line Unit of production 2016 4750 6000 2017 4750 4000 2018 4750 5000 2019 4750 4000 Total 19000 19000

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