Chubbyville purchases a delivery van for $22,400. Chubbyville estimates that at the end of its four-year service life, the van will be worth $1,600. During the four-year period, the company expects to drive the van 101,000 miles.

Actual miles driven each year were 26,000 miles in Year 1; 25,000 miles in Year 2; 23,000 miles in Year 3; and 23,000 miles in Year 4. Note that actual total miles of 97,000 fall short of expectations by 4,000 miles. Calculate annual depreciation for the four-year life of the van using each of the following methods.

1.	Straight-line. (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)

Depreciation expense

$

3.	Activity-based. (Round your depreciation rate per unit to two decimal places and final answers to the nearest dollar amount. Omit the "$" sign in your response.)

End of Year Amounts
Year	Depreciation Expense	Accumulated Depreciation	Book Value
1	$	$	$
2
3
4
Total	$