company purchases a delivery van for $24,000. The van is estimated to have a four-year service life and a residual value of $2,400. During the four-year period, the company expects to drive the van 120,000 miles.

Required: Calculate annual depreciation for the four-year life of the van using each of the following methods.

1. Straight-line
2. Double-declining-balance
3. Activity-based (Actual miles driven each year were 19,000 miles in Year 1; 30,000 miles in Year 2; 22,000 miles in Year 3; and 25,000 miles in Year 4. Note that actual total miles of 96,000 fall short of expectations by 24,000 miles.)