4.Required:Calculate Depreciation for Year 1 using units of production -activity based depreciation.80 delivery vans were purchased at a cost of $50,000 each.Each delivery van is estimated to be driven a total of 80,000 miles and then be sold for an estimated $10,000.In Year1 the vans were driven 1,500,000 miles.

5.Jim's Wholesale Foods had temporary differences related to the following future (deductible) or taxable amounts on December 31, 2020:a)Prepaid Expenses $15,000b) DepreciationExpense $80,000 and c) Warranty Expense ($22,000).There were no temporary differences on January 1, 2021.Taxable income was $20,000; Jim's had $100,000 of pretax accounting income.The tax rate is 35%.Prepare the journal entry to record income taxes for 2020.