2) WestSide's Pizza bought a used Toyota delivery van on January2, 2014, for $22,000. The van was expected to remain in service for four years left parenthesis (80,000 miles). At the end of its usefullife,

WestSide's officials estimated that thevan's residual value would be $2,000.

The van traveled 32,000 miles the firstyear, 28,000 miles the secondyear, 15,000 miles the thirdyear, and 5,000 miles in the fourth year.

Requirements

1.

make a schedule of depreciation expense per year for the van under the three depreciation methods.

2.

Which method best tracks the wear and tear on thevan?

3.

Which method would WestSide's prefer to use for income taxpurposes? Explain in detail why

WestSide's prefers this method.

Requirement 1. make a schedule of depreciation expense per year for the van under the three depreciation methods.

(For units-of-production anddouble-declining-balance, round to the nearest two decimal places after each step of the calculation. For years with$0 depreciation, make sure to enter"0" in the appropriatecolumn.)

Year Straight-Line

2014 $ 5,000

2015 5,000

2016 5,000

2017 5,000

Total = 20,000

Units-of-Production

2014 $ 8,000

2015 7,000

2016 3,750

2017 1,250

Total = 20,000

What is the Double-Declining-Balance?