On January 8, 2017, Whitewater Riders purchased a van to transport rafters back to the point of departure after completing the on-the-water portion of the rafting adventures they operate. The cost of the van is $44,000 and Whitewater Rider expects to use the van for four years or 60,000 miles. The estimated selling price after four years is $2,000. The van was driven 12,000 miles in 2017, 18,000 miles in 2018, 21,000 miles in 2019, and 10,000 miles in 2020.

1. Compute the annual depreciation expense and ending book value of the van using straight-line, double-declining, and units-of-production methods. Record your answers in the schedule below. 2. Copy and paste your completed schedule to Discussion Board. 3. Which method results in the highest net income for Whitewater Riders? a. 2017 b. 2018 c.2019 d. 2020 4. Which method results in the lowest income tax liability for Whitewater Riders? a. 2017 b. 2018 2019 d. 2020 5. Which method would you recommend Whitewater Riders use and why? Whitewater Riders Schedule of Van Depreciation for years 2017-2020 Depreciation Method Year Depreciation Expense Straight-line 2017 Ending Book Value Straight-line 2018 Straight-line 2019 Straight-line 2020 2017 2018 2019 Double-declining Double-declining Double-declining Double-declining Units-of-production Units-of-production 2020 2017 2018 Units-of-production 2019 Units-of-production 2020