Dryden purchased a van for $24,000 on January 1, in year 1 and planned to use it as rental property. The van has an estimated salvage value of $4,000 and an estimated useful life of 4 years. Dryden also assumed that the productive capacity of the van is 100,000 miles, and odometer readings indicate that the van was driven 40,000 miles in year 1, 20,000 miles in year 2, 30,000 miles in year 3, and 15,000 miles in year 4, respectively.

Required:

I. Determine the depreciation expense for year 1, year 2, year3 & year 4 by using straight-line method.

II. Determine the depreciation expense for year 1, year 2, year3 & year 4 by using double declining balance method.

III. Determine the depreciation expense for year 1, year 2, year3 & year 4 by using units of production method.