Calculate depreciation expense: straight-line and activity methods. (LO 2)

Walt's Water Pressure Company purchased a van for \(\$ 45,000\) on July 1, 2008. The van had an estimated useful life of 6 years or 250,000 miles. Walt's estimated the van's salvage value to be \(\$ 3,000\). The van was driven 25,000 miles in the year ended June 30,2009 , and 30,000 miles in the year ended June \(30,2010\).

a. Compute the depreciation expense for 2009 and 2010 , first using the straight-line method, then the activity method.

b. Which method portrays more accurately the actual use of this asset? Explain your answer.