Cost of an asset, depreciation The following events took place at Freddie Choo Painting during 2022:

a On 1 January, Freddie bought a van for $30 000. He had a tool chest and side racks for ladders installed for a total cost of $5000. He paid an additional $1000 to a signwriter to paint his name along the side of the van.

The truck is expected to last for four years and then be sold for $800. Freddie uses straight-line depreciation.

b On 1 April, Freddie purchased 10 cases of paint rollers at auction for $3200 (market value, $3800). Freddie will use all the paint rollers this year and next year (50 per cent each year). The paint rollers have no salvage value at the end of this time.

c On 1 February, Freddie paid Sydney Council $4500 for a three-year licence (1 February 2022 to 31 January 2025) to operate his business.
Required:
1 What cost would be assigned to:
a the van?
b the paint rollers?
2 Determine the amount of depreciation, or other expense, to be recorded for each asset for the year ended 31 December 2022.
3 Where will these assets appear on Freddie’s balance sheet as at 31 December 2022?