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On January 1, Speedy Delivery Company purchases a delivery van for $31,200. 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 $31,200. 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 128,000 miles. Actual miles driven each year were 35,000 miles in year 1 and 39,000 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.)
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