5 Chubbyville purchases a delivery van for $25,000. Chubbyville estimates a four-year service life and a residual value of $2,000. During the four-year period, the company expects to drive the van 108,000 miles. Calculate annual depreciation for the four-year life of the van using each of the following methods. 1. Straight-line. 8 01:06:01 Depreciation expense 4 6,250 2. Double-declining-balance. (Round your depreciation rate to 2 decimal places. Round your final answers to the nearest whole dollar.) End of Year Amounts Depreciation Accumulated Book Value Expense Depreciation Year 1 2 3 4 Total 3. Actual miles driven each year were 19,000 miles in Year 1; 31,000 miles in Year 2; 22,000 miles in Year 3; and 26,000 miles in Year 4. Note that actual total miles of 98,000 fall short of expectations by 10,000 miles. Calculate annual depreciation for the four-year life of the van using activity-based. (Round your depreciation rate to 2 decimal places.) End of Year Amounts Depreciation Accumulated Expense Depreciation Year Book Value 1 2 3 4 Total