Dazzle, Inc., purchased a new car for use in its business on January 1, 2015. It paid $25,000 for… 1 answer below »

Dazzle, Inc., purchased a new car for use in its business on January 1, 2015. It paid $25,000 for the car. Dazzle expects the car to have a useful life of four years with an estimated residual value of zero at the end of the four years. Dazzle expects to drive the car 60,000 miles during 2015, 65,000 miles during 2016, 40,000 miles in 2017, and 35,000 miles in 2018, for total expected miles of 200,000? Using the units-of-production method of depreciation (with miles as the production unit), calculate the following amounts for the car for each of the four years of its expected life (do not round here; use three decimal places for the depreciation cost per mile) a. Depreciation expense b. Accumulated depreciation balance c. Book value

 

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