On January 1, Speedy Delivery Company purchases a delivery van for $40,800. Speedy estimates that at the end of its four-year service life, the van will be worth $5,600. During the four-year period, the company expects to drive the van 176,000 miles.

Actual miles driven each year were 45,000 miles in year 1 and 50,000 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.

2. double declining balance

3. activity-based