Flowerworks Corporation purchases a vehicle for $42,400 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 $6,400. During the four-year period, the company plans to drive the vehicle 180,000 miles.

Actual miles driven each year were 46,000 miles in year 1 and 50,000 miles in year 2.

Required:

Calculate annual depreciation for the first two years of the vehicle using each of the following methods. (Do not round your intermediate calculations.)

1. Straight-line.

Year

1

2

2. Double-declining-balance.

Year

1

2

3. Activity-based.

Year

1

2