# 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. Required: Calculate annual depreciation for the first two years using each of the following methods. Round all amounts to

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.

Required:
Calculate annual depreciation for the first two years using each of the following methods. Round all amounts to the nearest dollar.
1. Straight-line.
2. Double-declining- balance.
3. Activity-based. Actual miles driven each year were 40,000 miles in year 1 and 46,000 miles in year 2.

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## Financial Accounting

3rd edition

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

ISBN: 978-0078025549