Speedy Delivery Company purchases a delivery van for $41,600. Speedy estimates that at the end of its four-year service life, the van will be worth $6,000. During the four-year period, the company expects to drive the van 222,500 miles.

Actual miles driven each year were 58,000 miles in year 1 and 64,000 miles in year 2.

*Calculate annual depreciation for the first two years of the van using each of the following methods.

.

Straight-line.

Year Annual Depreciation

1

2

2.

Double-declining-balance.

Year Annual Depreciation

1

2

3.	Activity-based. Year Annual Depreciation 1 2