Speedy delivery company purchases a delivery van for $36,000. Speedy estimates that at the end of its four year service life, the van will be worth $6,400. During the four-year period, the company expects to drive the van 148,000 miles. Actual miles driven each year were 40,000 miles in year 1 and 46,000 miles in year 2.

Calculate annual depreciation for the first two years of the van.