6. On Jan. 1 Madison Co. purchased a vehicle costing $80,000 (paid cash). The estimated useful life is eight years and the estimated miles is 200,000. The salvage value is estimated to be $5,000. a. Calculate the depreciation rate per mile (Units of Activity Method) b. Journalize Year 1 depreciation if total miles are 45,000 c. Calculate Depreciation for Year 2 if total miles are 40,000 Date 6 Accounts Ref. Debit Credit 7. Using Double Declining Balance Depreciation Method and the information in #6, calculate and journalize Madison's Year 1 depreciation; **Remember: Double Declining Balance Method uses double the straight-line rate. Date Accounts Ref. Debit Credit