2. Depreciation On July 1 we purchased a vehicle for $42,500. We expect to use it for 4 years at which point we will sell it for $2,500. We expect to drive it the vehicle for 200,000 km. In Year 1 we drove it for 30,000 km and in Year 2 for 55,000 km. Calculate and journalize depreciation expense at December 31, Year 1 and December 31, Year 2 using each of: - straight line method, - double-declining method and - units-of-production method. 3 Asset Disposal. Assume the vehicle purchased above had reached the end of its life and was now fully depreciated. Prepare the journal entries to record the disposal of the vehicle under each of the following independent assumptions: - the vehicle was donated to a charity - the vehicle was sold to an employee for $6,000 - the vehicle was traded for a new vehicle with a FMV of $55,000. We received a trade-in allowance of $8,000 on the old vehicle and paid the balance in cash