Carrie Heffernan Company purchased a delivery van on January 1,2019,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

Quizplus · Accepted Answer

The Answer of Carrie Heffernan Company purchased a delivery van on January 1,2019,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 1,2019,for