Speedy Delivery Company purchases a delivery van for $28,000. Speedy estimates that at the end of its four-year service life, the van will be worth $4,000. During the four-year period, the company expects to drive the van 120,000 miles. Actual miles driven each year were 33,000 miles in year 1 and 36,000 miles in year 2.

Required information Exercise 7-11A Determine depreciation under three methods (L07-4) [The following information applies to the questions displayed below.) Speedy Delivery Company purchases a delivery van for $28,000. Speedy estimates that at the end of its four-year service life, the van will be worth $4,000. During the four-year period, the company expects to drive the van 120,000 miles. Actual miles driven each year were 33,000 miles in year 1 and 36,000 miles in year 2. Required: Calculate annual depreciation for the first two years of the van using each of the following methods. (Do not round your Intermediate calculations.) Exercise 7-11A Part 1 1. Straight-line. Year Annual Depreciation 1 2