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On January 1, Speedy Delivery Company purchases a delivery van for $37,600. Speedy estimates that at the end of its four-year service life, the van
On January 1, Speedy Delivery Company purchases a delivery van for $37,600. Speedy estimates that at the end of its four-year service life, the van will be worth $5,800. During the four-year period, the company expects to drive the van 159,000 miles. Actual miles driven each year were 42,000 miles in year 1 and 45,000 miles in year 2. Required: Calculate annual depreciation for the first two years using each of the following methods. (Do not round your intermediate calculations.) 1. Straight-line.
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