Flowerworks Corporation purchases a vehicle for $35,200 to deliver flowers to the surrounding community. Flowerworks estimates that at the end of its four-year useful life, the delivery vehicle will be worth $6,000. During the four-year period, the company plans to drive the vehicle 182,500 miles.

Actual miles driven each year were 48,000 miles in year 1 and 54,000 miles in year 2.

Required:

Calculate annual depreciation for the first two years of the vehicle using each of the following methods.

1. Straight-line.

Year Annual Depreciation

Year 1:

Year 2:

2. Double-declining-balance.

Year Annual Depreciation

Year 1:

Year 2:

3. Activity-based.

Year Annual Depreciation

Year 1:

Year 2: