Dashing Car Rental Corporation (DCC) plans to purchase approximately 100 vehicles on January 1, 2020, spending $2 million plus 11 percent total sales tax for a total cost of $2,220,000. DCC expects to use the vehicles for five years and then sell them for approximately $420,000. DCC anticipates the following average vehicle use over each year ended December 31:

	2020	2021	2022	2023	2024
Kilometers per year	15,000	20,000	10,000	10,000	5,000

To finance the purchase, DCC borrowed $1.8 million by signing a 6% promissory note. The note is to be repaid in full by December 31, 2024. On December 31 of each year, DCC makes one payment on the installment note comprising blended interest and principal components. The amortization schedule for the note is presented below. DCC has a December 31 year-end. The company does not make monthly adjustments, but rather makes adjusting entries every quarter.

The note carries loan covenants that require DCC to maintain a minimum times interest earned ratio of 3.0. DCC forecasts that the company will generate the following sales and preliminary earnings (prior to recording depreciation on the vehicles and interest on the note). For purposes of this question, ignore income tax.

	2020	2021	2022	2023	2024
Sales Revenue	$2,000,000	$2,500,000	$2,800,000	$2,900,000	$3,000,000
Income before depreciation and interest expense	1,000,000	800,000	900,000	1,200,000	1,100,000

Calculate the depreciation expense that would be recorded in 2020 and 2021, using the (a) straight-line, (b) double-declining balance, and (c) units-of-production depreciation method. [