Speedy delivery company on Jan. 1 2021, purchased a van for $20,000. to complete the purchase, the company also incurred $800 shipping cost and $1,200 sales tax.

Speedy estimates that at the end of its the four- year service life the van will be worth 4,000. during the four year period, the company expects to drive the van 100,000 miles. actual miles driven each year were 32,000 miles in year 1; 35,000 in year 2 and 27,000 in year 3 and 6,000 miles in year 4.

A. using straight depreciation method, what is annual depreciation expense?

B. Using the double declining balance method what are the amounts of depreciation expense for year 3 and year 4?

C. using activity-based method what is the balance of accumulated depreciation at the end of year 2?