Problem 5 Partial Year On August 2nd, Speedy Delivery Company purchases a delivery van for $36,000. Speedy estimates that at the end of its four-year life, the van will be worth $6,400. During the four-year period the company expects to drive the van 148,000 miles. During the first year the van is driven 50,000 miles and 72,000 in the second year. 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 4. Sum of the years Problem 5 Partial Year On August 2nd, Speedy Delivery Company purchases a delivery van for $36,000. Speedy estimates that at the end of its four-year life, the van will be worth $6,400. During the four-year period the company expects to drive the van 148,000 miles. During the first year the van is driven 50,000 miles and 72,000 in the second year. 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 4. Sum of the years