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At the beginning of the current year, Luciannos Pizza purchased a car to be used in delivering pizzas. The car cost $14000. It will be

At the beginning of the current year, Luciannos Pizza purchased a car to be used in delivering pizzas. The car cost $14000. It will be used for 5 years, after which its residual value will be about $2000. In those 5 years, Luciannos estimates that the car will be driven 80000 miles.

  1. Calculate depreciation for all 5 years, using the straight-line method.
  2. Assume that the car was driven 10000 miles in year 1; 15000 in year 2; 18000 in year 3; 20000 in year 4; and 17000 in year 5. Calculate depreciation, using the units of production method for all 5 years.

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