Exercise 7-11 Determine depreciation under three methods (LO4)

Speedy Delivery Company purchases a delivery van for $35,200. Speedy estimates that at the end of its four-year service life, the van will be worth $6,000. During the four-year period, the company expects to drive the van 182,500 miles.

Actual miles driven each year were 48,000 miles in year 1 and 54,000 miles in year 2.

Required:

Calculate annual depreciation for the first two years of the van using each of the following methods.

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