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Exercise 11-1 Depreciation methods [LO11-2] On January 1, 2018, the Excel Delivery Company purchased a delivery...

Exercise 11-1 Depreciation methods [LO11-2]

On January 1, 2018, the Excel Delivery Company purchased a delivery van for $129,000. At the end of its five-year service life, it is estimated that the van will be worth $13,200. During the five-year period, the company expects to drive the van 386,000 miles.

Required:
Calculate annual depreciation for the five-year life of the van using each of the following methods.

1. Straight line.
2. Sum-of-the-years’-digits.
3. Double-declining balance.
4. Units of production using miles driven as a measure of output, and the following actual mileage:

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