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Speedy Delivery Company purchases a delivery van for $40,800. Speedy estimates that at the end of Its four-year service life, the van will be worth
Speedy Delivery Company purchases a delivery van for $40,800. Speedy estimates that at the end of Its four-year service life, the van will be worth $5,600. During the four-year perlod, the company expects to drive the van 176,000 miles. Actual miles driven each year were 45,000 miles in year 1 and 50,000 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.) 1. Straight-line. Annual Depreciation Year 2 Doublo-declining-balance Annual Depreciation Year 3. Activity-based. Annual Depreciation Year
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