Speedy Delivery Company purchases a delivery van for $31,000. Speedy estimates that at the end of its four-year service life, the van will be worth $4,600. During the four-year period, the company expects to drive the van 100,000 miles
Actual miles driven each year were 30,000 miles in year 1; 32,000 miles in year 2; 28,000 miles in year 3; and 16,000 miles in year 4. Note that actual total miles of 106,000 exceed expectations by 6,000 miles
Required:Calculate annual depreciation for the four-year life of the van using each of the following methods. (Do not round intermediate calculations. Enter your answers for "Depreciation Rate" as numbers, not percentages, rounded to 3 decimal places.)
1.Straight-line.
Years 1,2,3,4 , Annual depreciation, year-end value
2.Double-declining-balance.
Years 1,2,3,4, beginning book value x depreciation rate = depreciation expense, accumulated depreciation, book value
3.Activity-based.
Years 1,2,3,4, miles driven x depreciation rate = depreciation expense, accumulated depreciation, book value.