Reference no: EM13881824

1.On January 1, 2013, the Excel Delivery Company purchased a delivery van for $33,000. At the end of its five year service life, it is estimated that the van will be worth $3,000. During the five year period, the company expects to drive the van 100,000 miles.

Required:
Calculate annual depreciation for the five year life of the van using each of the following methods. Round all computations to the nearest dollar.
1. Straight line.
2. Sum of the years  digits.
3. Double declining balance.
4. Units of production using miles driven as a measure of output, and the following actual mileage:
Year Miles
2013 ........ 22,000
2014 ........ 24,000
2015 ........ 15,000
2016 ........ 20,000
2017 ........ 21,000