Mickey & Goofy Movers Limited bought a moving van for $42,000. It has an estimated life of 5 years, or 160,000 kilometers. Its residual value is estimated to be $2,000. The van was driven 32,000 km in year 1, 35,000 km in year 2 and 28,000 km in year 3. Required: A. Calculate depreciation expense in the first three years of the asset's life under the following methods: - Straight line - Double diminishing balance - Units of production B. If the van was sold for $17,500 at the end of year 3 calculate the gain or loss on disposal assuming the company used the straight line method of depreciation