Using the activity method, calculate the first two years of depreciation expense for a vehicle that cost

Question:

Using the activity method, calculate the first two years of depreciation expense for a vehicle that cost $32,000, has an estimated useful life of five years or 125,000 miles, and has an estimated salvage value of $2,500. The number of miles driven each year is as follows:

Year 1......25,000

Year 2......35,000

Year 3......15,000

Year 4......45,000

Year 5...... 5,000

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...