van will sell for $$7500.$ Asume that she will tay the van on August $15,2020,$ and it will be ready for use on September $1,2020.$

Natalie is concernd about the impact of the van's cost on her income statement and balance sheet. She has come to you for advice on calculating the van's depreciation.

$($a$)$

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Determine the cost of the van.

Cost of the van $

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Attempts: $2$ of $3$ used

$($b$)$

Your answer is incorrect.

Prepare three depreciation tables for $2020,2021,$ and $2022$: one for straight$-$line depreciation $(\text{'}$similar to the one in Illustration $9\mathrm{.}10),$ one for double$-$declining balance depreciation $($IIlustration $9\mathrm{.}14),$ and one for units$-$of$-$activity depreciation $($Illustration $9\mathrm{.}12).$ For units$-$of$-$activity, Natalie estimates she will drive the van as follows: $15,000$ miles in $2020$; $45,000$ miles in $2021$; $50,000$ miles in $2022$;$45,000$

Straight$-$line depreciation