1. On 1/1/2015 Monroe purchased a delivery van for $33,000. The van has a 5 year life and $3,000 salvage value. During the 5 year period the company expects to drive the van 100,000 miles. Calculate the annual depreciation for the 5 year life of the van using each of the following methods (round all computations to the nearest dollar).
   1. Straight line (use excels SLN financial formula)
   2. Double-declining balance (DDB financial formula)
   3. Sum of the years digits (SYD financial formula)
   4. Units of production using miles driven as a measure of output and the following actual mileage: 2015 22,000 miles, 2016 24,000 miles, 2017 15,000 miles, 2018 20,000 miles, 2019 21,000 miles)
   5. For all methods dont depreciate the van below the salvage value (DDB and units of production).
2. Assume that at the start of 2019 the company decides the total useful life of van should have been 8 years instead of 5 and the estimate of the salvage value is lowered to $1,000 instead of $3,000. Calculate the revised depreciate rate and record depreciation for 2019 on 12/31/2015.
3. Ignoring part 2 prepare the journal entry required assuming SL depreciation was used and the van was sold 1/1/2019 for $11,000 cash.
4. Smith Corporation operates several factories that manufacture medical equipment. Near the end of the 2020 fiscal year, a change in business climate related to a competitors innovative products indicated to management that the $200 million book value (original cost $350 million less accumulated depreciation of 150 million) of the equipment of one of Smiths factories may not be recoverable. Management estimates that the equipment will generate positive net cash inflows of 175 million over the remaining useful life. The fair value of the equipment is estimated to be 125 million. Prepare the journal entry to record impairment of the equipment at 12/31/2020.