: Darknight Traders purchased a delivery truck for $20,000 on January 1, 2017. The truck has an expected salvage value of $4,000 and is expected to be driven 160,000 miles over its estimated life of 4 years.

Actual miles driven were:

Year	Miles Driven	Year	Miles Driven
2017	40,000	2019	35,000
2018	60,000	2020	25,000

Requirements:

1. Compute depreciation schedules for 2017, 2018, 2019 and 2020 using straight line method and units of activity method.

2. Assuming Darknight Traders uses units of activity method depreciation. Give the journal entry for depreciation expense in December 31, 2018.