On 2 January 2016, Southern Pizza bought a used Nissan delivery van for R19 200. The van was expected to remain in service for four years (30 000 Kilometers). At the end of its useful life, Southern officials estimated that the van 's residual value would be R2 400. The van travelled 8000 Km the first year, 8 500 Km the second year, 5 500 Km the third year, and 8 000 Km in the fourth year. Prepare a schedule of depreciation expense per year for the van under the three (3) depreciation methods. ( For -units -of-production and double-declining-balance, round to the nearest two (2) decimals after each step of calculation.)

Required:

1. Which method best tracks the wear and tear of the van?

2. Which method would Southern prefer to use for income tax purposes? Explain in detail why Southern prefer this method.