help please! A company purchases a delivery van for $25,000. The van is...
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A company purchases a delivery van for $25,000. The van is estimated to have a four-year service life and a residual value of $2,200. During the four-year period, the company expects to drive the van 114,000 miles. Required: Calculate annual depreciation for the four-year life of the van using each of the following methods. 1. Straight-line 2. Double-declining-balance 3. Activity-based (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 26,000 miles in Year 4. Note that actual total miles of 98,000 fall short of expectations by 16,000 miles.)
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