On January 1, 2010, the Super Fast Subs company purchased a delivery automobile for $31,000. The estimated useful life of the vehicle is five years, and the estimated salvage value is 1,000. The company expects the automobile to be driven 200,000 miles during its service life. Actual miles driven were: Year 2010 driven 35,000 miles, 2011 driven 40,000 miles, 2012 driven 45,000 miles, 2013 driven 39,000 miles and in 2014 driven 41,000 miles.

Requirements1. Calculate the depreciation expense for each year of the five-year-life of the automobile using the following methods. (Round your answers to the nearest dollar.) a, Straight-line method b. Double-declining balance method c. Activity method 2. How does the choice of depreciation methods affect net income in each of the years? How does the choice of depreciation methods affect the balance sheet in each of the years?