Answer:
total cost = $100,000 + $3,000 + $600 + $10,400 = $114,000
straight line depreciation expense = ($114,000 - $12,000) x 1/5 = $20,400
year       depreciation expense        book value
1                   $20,400                         $93,600
2                  $20,400                         $73,200
3                  $20,400                         $52,800
4                  $20,400                         $32,400
5                  $20,400                         $12,000
<u>RESULTS IN HIGHER INCOME DURING THE FIRST YEAR. </u>
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units of production deprecation = ($114,000 - $12,000) / 136,000 = $0.75 per mile
year       depreciation expense        book value
1                   $24,000                         $90,000
2                  $24,000                         $66,000
3                  $24,000                         $42,000
4                  $24,000                         $18,000
5                  $6,000                           $12,000
double-declining-balance depreciation:
depreciation year 1 = $114,000 x 2/5 = $45,600
depreciation year 2 = $68,400 x 2/5 = $27,360
depreciation year 3 = $41,040 x 2/5 = $16,416
depreciation year 4 = $24,624 x 2/5 = $9,850
depreciation year 5 = $14,774 - $12,000 = $2,774
year       depreciation expense        book value
1                   $45,600                         $68,400
2                  $27,360                         $41,040
3                  $16,416                           $24,624
4                  $9,850                           $14,774 
5                  $2,774                            $12,000