Required information

Skip to question

$[$The following information applies to the questions displayed below.$]$

On January $1,2024,$ the Excel Delivery Company purchased a delivery van for $$44,000.$ At the end of its five$-$year service life, it is estimated that the van will be worth $$2,000.$ During the five$-$year period, the company expects to drive the van $155,000$ miles.

Required:

Calculate annual depreciation for the five$-$year life of the van using each of the following methods.

$1.$ Straight line

$2.$ Double Declining Balance

$3.$ Units of production using miles driven as a measure of output, and the following actual mileage:

Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.