1. The Bennington Rescue Squad purchases a new ambulance at a cost of $56,500. It is expected to last 6 years and have a salvage value of $8,500. It has a usable life in miles of 240,000. Show a depreciation schedule for the first 3 years only using (a) the straight line method and (b) the units of production method.

Straight-line Method

End of Year	Book Value Beginning of Year	Depreciation	Accumulated Deprecation	Book Value End of Year
1
2
3

Units of Production Method (1 unit of production = 1 mile)

End of Year	Cost of Ambulance	Units produced	Depreciation expense for year	Book Value End of Year
1		15,000
2		23,000
3		32,000