2. Assume you own a company that purchased a new Delivery Van on 1 March 2016, for 18,00,000 Taka. The estimated residual value is zero Taka. The delivery van had an estimated useful life of 12 years and company expects to drive the delivery van for 120,000 miles, throughout it's total useful life. The delivery van was driven for 8333 miles in 2016; 10000 miles in 2017, 10500 miles in 2018, 11000 miles in 2019, 8000 miles in 2020.

Required:

(a). Compute the annual depreciation expense for the year 2016, 2017 and 2018, if the company

follows:

(i). Straight-line Method.

(ii). Units-of-activity Method.

(iii). Reducing Balance Method (at 35%).

(Show calculation of Annual Depreciation, Accumulated Depreciation and Book Value for all the

Three methods ) 14 marks

2. Assume you own a company that purchased a new Delivery Van on 1 March 2016, for 18,00 Taka. The estimated residual value is zero Taka. The delivery van had an estimated useful life years and company expects to drive the delivery van for 120,000 miles, throughout it's total us life. The delivery van was driven for 8333 miles in 2016; 10000 miles in 2017, 10500 miles in 2018, 11000 miles in 2019, 8000 miles in 2020. Required: (a). Compute the annual depreciation expense for the year 2016, 2017 and 2018, if the con follows: (i). Straight-line Method. (ii). Units-of-activity Method. (iii). Reducing Balance Method (at 35%). (Show calculation of Annual Depreciation, Accumulated Depreciation and Book Value for a Three methods ) 14 marks