Speedy Delivery Company purchases a delivery van for $28,000. Speedy estimates that at the end of its four-year service life, the van will be worth $4,000. During the four-year period, the company expects to drive the van 120,000 miles.

Actual miles driven each year were 28,000 miles in year 1; 32,000 miles in year 2; 20,000 miles in year 3; and 24,000 miles in year 4. Note that actual total miles of 104,000 exceed expectations by 4,000 miles

Required:

Calculate annual depreciation for the four-year life of the van using each of the following methods.

1. Straight-line.Year: Annual Depreciation : $ 24,000

2. Double-declining-balance.Year: Annual Depreciation: $ 26,000

Explanation:

I think your question is missed of key information, allow me to add in and hope it will fit the original one.  

Calculate annual depreciation for the four-year life of the van using each of the following methods:

1. Straight-line.Year: Annual Depreciation12

2. Double-declining-balance.Year: Annual Depreciation12

My

Cost of the van: $28,000

Salvage Value at end of life: $4,000

Cost - Residual value/ useful life

= (28,000 - 4000)/ 4

= 6,000 per year  

The depreciation amount is same for year 1 and year 2 is $6,000

So we have:

Cost of delivery van                            $ 28,000

Salvage Value at end of life              ($   4,000)

Depreciable value                              $ 24,000

100% / useful life

100%/4*2 = 50

Cost - residual value * 50%

= $28,000 - $4,000*0.5 = $26000

The depreciation amount is same for year 1 and year 2 is $26000/2 = $13,000

So we have:

Cost of delivery van                            $ 28,000

Salvage Value at end of life              ($   2,000)

Depreciable value                              $ 26,000

d, conspicuous consumption is when you try to increase your wealth or social status (and in the case he's trying to create the perception of wealth considering he can't really afford it)

answer; (inseparability);