Carrie Heffernan Company purchased a delivery van on January 1, 2016, for $50,000. The van was expected to remain in service 4 years (or 100,000 miles)and has a residual value of $5,000. The van traveled 30,000 miles the first year, 25,000 miles the second year, and 22,500 miles in the third and fourth years.
Required:
1. Prepare a schedule of depreciation expense per year for the first four years of the asset's life using the (a)straight-line method, (b)units-of-production method, and (c)double-declining-balance method.
2. Prepare a schedule of the book value of the van for each of the four years using the (a)straight-line method, (b)units-of-production method and (c)double-declining-balance method.

Question

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The Answer of Carrie Heffernan Company purchased a delivery van on January 1, 2016, for $50,000. The van was expected to remain in service 4 years (or 100,000 miles)and has a residual value of $5,000. The van traveled 30,000 miles the first year, 25,000 miles the second year, and 22,500 miles in the third and fourth years.
Required:
1. Prepare a schedule of depreciation expense per year for the first four years of the asset's life using the (a)straight-line method, (b)units-of-production method, and (c)double-declining-balance method.
2. Prepare a schedule of the book value of the van for each of the four years using the (a)straight-line method, (b)units-of-production method and (c)double-declining-balance method.

Carrie Heffernan Company Purchased a Delivery Van on January 1