Pen Industry purchased a delivery truck for $60,000 on January 1, 2015. It is estimated that the van will have a service life of 5 years and the estimated worth at the end of that period is $6,000. During the five-year period, the company expects to drive the van 90,000 miles.

Required:

Calculate the annual depreciation for the five-year life of the van using each of the following methods. Round all computation to the nearest dollar.

1. Straight line (show the depreciation schedule in table format)
2. Sum-of-the-years-digits
3. Double-declining balance
4. Units of production using miles driven as a measure of output, and the following actual mileage:

Year Miles

2015 18,000

2016 18,500

2017 19,000

2018 18,600

2019 19,050

Pen Industry purchased a delivery truck for $60,000 on January 1, 2015. It is estimated that the van will have a service life of 5 years and the estimated worth at the end of that period is $6,000. During the five-year period, the company expects to drive the van 90,000 miles.

Required:

Calculate the annual depreciation for the five-year life of the van using each of the following methods. Round all computation to the nearest dollar.

1. Straight line (show the depreciation schedule in table format)
2. Sum-of-the-years-digits
3. Double-declining balance
4. Units of production using miles driven as a measure of output, and the following actual mileage:

Year Miles

2015 18,000

2016 18,500

2017 19,000

2018 18,600

2019 19,050