Speedy Delivery Company purchases a delivery van for $43,200. Speedy estimates that at the end of its four-year service life, the van will be worth $6,800. During the four-year period, the company expects to drive the van 227,500 miles.

Actual miles driven each year were 58,000 miles in year 1 and 62,000 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.

Year: Annual Depreciation

1

2 2. Double-declining-balance.

Year: Annual Depreciation

1

2 3. Activity-based.

Year: Annual Depreciation

1

2