Tom's Company purchased a van at a total cost of $55,000. At the end of its useful life of 5 years, the van should have a salvage value of $5,000. The van is expected to be driven 100,000 miles over this time period as follows: year 1 25,000 miles, year 2 30,000 miles, year 3 20,000 miles, year 4 15,000 miles, and year 5 10,000 miles. Prepare a schedule showing the depreciation expense and year-end carrying value of the van for each of the next two years under each of the following methods of depreciation:
- Straight Line
- Units-of-Production
- Double-declining-balance