At the beginning of 2010, Speedy Delivery Company purchased a delivery van for $28,000. Speedy estimates that at the end of its four-year (or 120,000 mile) service life, the van will be worth $4,000. Assume that actual usage was as follows:

Year Miles driven

2010 35,000

2011 30,000

2012 45,000

2013 30,000

Which of the following methods of calculating depreciation will result in the highest reported amount of income for 2010?

	a.	straight line
	b.	units of activity
	c.	double declining balance
	d.	all units will result in the same net income

Refer to the information above for Speedy Delivery Company.

Assuming the company uses straight line depreciation, what is the book value of the asset as of December 31, 2012?

a.

$6,000

b.

$10,000

c.

$18,000

.

d.$24,000

e. none of the above

Refer to the information above for Speedy Delivery.

Assuming units of activity, what is the accumulated depreciation of the van as of December 31, 2011?

	a.	$6,000
	b.	$11,000
	c.	$13,000
	d.	$15,000
	e.	none of the above

.

Refer to the information above for Speedy Delivery Company.

Assuming double declining balance, what is the book value of the van as of December 31, 2011?

	a.	$7,000
	b.	$14,000
	c.	$16,000
	d.	$22,000
	e.	none of the above