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; 42,000 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? $18,270 $8,820 $16,530 $7,980 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