Show all calculations for your solution to the following problem:

UOP Pizza bought a used Chevy delivery van on January 2, 2016 for $22,800. The van was expected to remain in service for four years (48,750 miles). At the end of its useful life, UOP officials estimated that the van's residual value would be $2,500. The van traveled 15,000 miles the first year, 17,000 miles the second year, 12,500 miles the third year, and 4,250 miles in the fourth year.

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

Straight Line

Units of production

Double-declining balancean accelerated depreciation method

Which method best tracks the wear and tear on the van? Which method would UOP prefer to use for income tax purposes? Explain in detail why UOP would prefer this method.

Cost	$22,800
Life	4
Total Miles	48,750
Residual Value	2,500
Years
1	15,000
2	17,000
3	12,500
4	4,250
Straight line	Book Value	Depreciation expense	Accumulated Depreciation	Book Value Year End	22800-2500=20300
2016	22,800	5075	5075	17725	20300/4= 5075
2017	17,725	5075	10150	12650
2018	12,650	5075	15225	7575
2019	7,575	5075	20300	2500
Units of production Year	Cost	Rate per Unit	Annual Depreciation Expense	Accumulated depreciation	Book Value
01/01/2016	22,800				22,800
01/31/2016
01/31/2017
01/31/2018
01/31/2019
Double-declining balance	Cost	DDB Rate	Annual Depreciation Expense	Accumulated Depreciation	Book Value
01/01/2016	22800				22800
01/31/2016
01/31/2017
01/31/2018
01/01/2019