Speedy Delivery Company purchases a delivery van for $36,000. Speedy estimates that at the end of its four-year service life, the van will be worth $6,400. During the four-year period, the company expects to drive the van 148,000 miles. Actual miles driven each year were 40,000 miles in year 1 and 46,000 miles in year 2.
Required:
Calculate annual depreciation for the first two years of the van using each of the following methods. (Do not round your intermediate calculations.)
1. Straight line
2. Double-declining-balance
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