West Side Pizza bought a used Toyota delivery van on January2, 2014, for $22,000.

The van was expected to remain in service for four years left parenthesis (80,000 miles). At the end of its usefullife, WestSide's officials estimated that thevan's residual value would be $2,000.

The van traveled 32,000 miles the firstyear, 28,000 miles the secondyear, 15,000 miles the thirdyear, and 5,000 miles in the fourth year.

Requirements

1.

Make a schedule of depreciation expense per year for the van under the three depreciation methods.

2.

Which method best tracks the wear and tear on thevan?

(Double-Declining Balance, Straight Line or Units-Of-Production)

3.

Which method would WestSide's prefer to use for income taxpurposes?

Explain in detail why WestSide's prefers this method