ACC 205 Week 3 Exercise 5 Depreciation methods
- Depreciation methods. Betsy Ross Enterprises purchased a delivery van for $30,000 in January 20X7. The van was estimated to have a service life of 5 years and a residual value of $6,000. The company is planning to drive the van 20,000 miles annually. Compute depreciation expense for 20X8 by using each of the following methods:
- Units-of-output, assuming 17,000 miles were driven during 20X8
- Straight-line
- Double-declining-balance
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