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1. Prepare a schedule of depreciation expense per year for the van under
the three depreciation methods.
2. Which method best tracks the wear and tear on the van?
3. Which method would Tasteful's prefer to use for income tax purposes?
Explain in detail why
Tasteful's prefers this method.
Prepare a schedule of depreciation expense per year for the van under
the three depreciation methods
Requirement 2. Which method best tracks the wear and tear on the
van?  
The units-of-production method tracks the wear and tear on the van
most closely.
Requirement 3. Which method would Tasteful's prefer to use for income
tax purposes? Explain in detail why Tasteful's prefers this method. For
income tax purposes, Tasteful's
would prefer the double-declining-balance method because it provides
the
most depreciation, and thus, the largest tax deductions in the early life
of the asset.
E8-20A
Corp. purchased 10, $1,000, 77%
bonds of Power Source Corporation when the market rate of interest was
12%. Interest is paid semiannually on the bonds, and the bonds will
mature in ten years. Using the PV function in
Excel Superscript ®Excel®, compute the price Haygood paid (the
present value) on the bond investment. (Assume that all payments of
interest and principal occur at the end of the period. Round your answer
to the nearest cent.)
E9-23A