ABC Company on Jan $1,2021$ purchased a delivery van for $$23,000.$ To complete the purchase, the company also incurred a $$800$ shipping cost and $$1,200$ sales tax. The company estimates that at the end of its four$-$year service life, the van will be worth $$4,000.$ During the four$-$year period, the company expects to drive the van $100,000$ miles. Actual miles driven each year were $20,000$ miles in year $1$;$25,000$ miles in year $2$;$45,000$ miles in year $3$ ; and $55,000$ miles in year $4.$

Required:

Using Straight$-$line depreciation method, what is the annual depreciation expense?

$$5,250$

$$4,750$

$$5,750$

$$5,050$

Using the double$-$declining$-$balance method, what are the amounts of depreciation expense for year $2?$

$$6,250$

$$5,750$

$$5,250$

$$4,750$

Using activity$-$based depreciation method, what is the balance of accumulated depreciation at the end of year $3?$

$$18,900$

$$9,450$

$$17,100$

$$8,550$

Suppose that the company decided on December $31,2022($Year $2)$ that the useful life of the van will be $5$ years total $($instead of $4$ years total$).$ Assume that the company uses the straight$-$line method and the change will become effective in $2023.$ What will be the amount of depreciation expense in $2023($year $3)?$

$$3,500$

$$4,200$

$$3,167$

$$3,800$