2 Flower Power, Inc Purchases A Van For Making Deliveries For $24,300. The Company Estimates A Four-Year Service Life And A Residual Value Of $1700. During The Four-Year Period, The Company Expects To Drive The Van 109,000 Miles. Calculate Annual Depreciation For The Four-Year Life Of The Van Using Each Of The Following Methods. 1. Straight-Line. 20 Points

 

20 2 points Flower Power, Inc purchases a van for making deliveries for $24,300. The company estimates a four-year service life and a residual value of $1,700. During the four-year period, the company expects to drive the van 109,000 miles. Calculate annual depreciation for the four-year life of the van using each of the following methods. 1. Straight-line. Depreciation expense $ 5,650 2 004116 2. Double-declining-balance. (Round your depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar.) Year 1 $ End of Year Amounts Depreciation Accumulated Expense Depreciation 12,150 $ 12.150 $ Book Value 12.150 2 . 6,075 18.225 6.075 3,038 21.263 3,038 4 Total $ 1.337 22.600 22.000 1,700 3. Actual miles driven each year were 18,000 miles in Year 1; 30,000 miles in Year 2: 21,000 miles in Year 3; and 27,000 miles in Year 4. Note that actual total miles of 96,000 fall short of expectations by 13,000 miles. Calculate annual depreciation for the four-year life of the van using activity-based. (Round your depreciation rate to 2 decimal places.) Year 2 End of Year Amounts Depreciation Accumulated Expense Depreciation Book Value 24.300 3 4 Total $ 0