On January 1 2010 the super fast subs company purchased a delivery automobile for $31000. The estimated useful life of the vehicle is five years and the estimated salvage value is 1000. The company expects the automobile to be driven 200000 miles during its service life. Actual miles driven were:Year Miles2010 350002011 400002012 450002013 390002014 41000Requirements1. Calculate the depreciation expense for each year of the five-year-life of the automobile using the following methods. (Round your answers to the nearest dollar.)a Straight-line methodb. Double-declining balance methodc. Activity method2. How does the choice of depreciation methods affect net income in each of the years? How does the choice of depreciation methods affect the balance sheet in each of the years?
