Question

Speedy Delivery Company purchases a delivery van for $44,000. Speedy estimates that at the end of...

Speedy Delivery Company purchases a delivery van for $44,000. Speedy estimates that at the end of its four-year service life, the van will be worth $7,200. During the four-year period, the company expects to drive the van 184,000 miles.

Actual miles driven each year were 48,000 miles in year 1 and 56,000 miles in year 2.

Required:

Calculate annual depreciation for the first two years of the van using each of the following methods. (Do not round your intermediate calculations.)

-Straight-line

-Double-declining-balance

-Activity-based

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