TB EX Qu$.7-198$ Chubbyville purchases a delivery van...

Chubbyville purchases a delivery van for $$23,100.$ Chubbyville estimates a four$-$year service life and a residual value of $$2,000.$ During

the four$-$year period, the company expects to drive the van $108,000$ miles. Calculate annual depreciation for the four$-$year life of the

van using each of the following methods.

Straight$-$line.

Depreciation expense

$$5,275$

Double$-$declining$-$balance. $($Round your depreciation rate to $2$ decimal places. Round your final answers to the nearest whole

dollar.$)$

Actual miles driven each year were $19,000$ miles in Year $1$; $31,000$ miles in Year $2$; $22,000$ miles in Year $3$; and $27,000$ miles in Year $4.$

Note that actual total miles of $99,000$ fall short of expectations by $9,000$ miles. Calculate annual depreciation for the four$-$year life of

the van using activity$-$based. $($Round your depreciation rate to $2$ decimal places.$)$