Zoom Car Corporation (ZCC) plans to purchase approximately 100 vehicles on December 31, 2015, for $2.9 million, plus 8 percent total sales tax. ZCC expects to use the vehicles for 5 years and then sell them for approximately $522,000. ZCC anticipates the following average vehicle use over each year ended December 2016 15,000 2017 20,000 2018 23.500 2019 23,500 2020 5,000 Miles ear To finance the purchase, ZCC signed a 5-year promissory note on December 31, 2015, for S2.61 million with interest paid annually at the market interest rate of 6 percent. The note caries loan covenants that require ZCC to maintain a minimum times interest earned ratio of 3.0 and a minimum fixed asset turnover ratio of 1.0. ZCC forecasts that the company will generate the following sales and preliminary eamings (prior to recording depreciation on the vehicles and interest on the note). (For purposes of this question, ignore income tax) Sales Revenue Income before S 2,900 S 3,400 3,700 $ 3,800 $ 3,900 1.450 60 850 1,950 2,050 Depreciation and Interest Expense Required: 1. Calculate the amount of interest expense that would be recorded each year Answer is complete and correct. 156,600per ear 2. Calculate the depreciation expense that would be recorded each year, using the following depreciation methods (a) Straight-line Answer is complete and correct. 522,000Per (b) Double-declining-balance (Do not round intermediate calculations.) Answer is complete and correct. preciation 2016 $ 1,252,800 2017 2018 2019 S 154,512 2020 751 ,680 51,008 Answer is complete and correct. 2016 2017 2018 2019 |$ 705,000 2020 450,000 600,000 705,000 150,000