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. . . . The following information relates to a delivery van purchased by MaiTai's Furniture Emporium: Cost - $26,000 Salvage Value = $1,500 Estimated
. . . . The following information relates to a delivery van purchased by MaiTai's Furniture Emporium: Cost - $26,000 Salvage Value = $1,500 Estimated Useful Life in Years - 5 Years Estimated Useful Life in Miles - 220,000 miles Miles Driven by Year = 40,000 miles (Year 1), 38,000 miles (Year 2). 47,000 (Year 3), 36,000 (Year 4) and 59,000 (Year 5). Part 1 (5 points) Using the units of activity method, what should the balance in the accumulated depreciation account be at the end of year 22 W Part II (5 points) Using the double declining balance method (40%), what should the depreciation expense be in year 2? Show Your Work
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