Question 1 (8 marks) Sydney Tour Company purchased a van for $150,000. The company expected the van to be used for 10 years, or 200,000 miles, with an estimated residual value of $2,000 at the end of that time. Actual usage of the van for the first 3 years were as follows: Year 1: 5,000 miles Year 2: 10,000 miles Year 3: 12,000 miles Required a) Calculate the depreciation for the second year under each of the methods below (4 marks) I. Straight-line Il. Units of production Show how the asset of van would appear in the balance sheet prepared at the end of the second year if the straight-line method was used (2 marks) b) c) What factors should be considered in the selection of a depreciation method? (2 marks)