Part 1: Prepare a depreciation schedule for three delivery vehicles.

Use the first workbook page of the Excel template and prepare the depreciation schedules for three of the delivery vehicles. Dan's Dependable Delivery has more vehicles in their fleet; you are preparing depreciation schedules for only three vehicles. Assume all the vehicles below are purchased between January 1 and January 5.

A used delivery van (#1 van) with an original purchase price of $20,000. The residual value is $5,000, and the useful life is 3 years. Use straight-line depreciation.

A new delivery van (#2 van) has an original purchase price of $45,000. The residual value is $3,500, and the useful life is 5 years. Use double declining depreciation.

A third vehicle with special equipment installed to meet a client's needs was purchased for $60,000. It is estimated to be driven 100,000 miles and has a residual value of $15,000. Use units of production depreciation method. 40,000 miles are driven the first year, 30,000 miles the second year, 20,000 miles the third year, and 15,000 miles the fourth year.