19 What is the depreciation expense for each equipment purchased should Johnson Ltd. charge for the first year knowing that it uses 200% declining balance method (refer to Question (15) above)? Justify your answer. (6 marks)

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15 Johnson Ltd. bought a fleet of vans for deliveries for $1,215,000. They decided to pain them in the companys colours costing $35,000 and also to fit them with appropriate shelves and tail lifts costing $225,500 in total. The management is keen to provide the drivers with a good working conditions, so they subscribed for a 30 minutes massage service per week for each driver costing a total of $25,000. They also paid $20,000 to register the vehicles, and $30,000 to fit them with GPS tracking devices. What is the cost basis for the delivery van? Justify your answers. (4 marks)

Cost basis of delivery van:	Amount
Add: van purchased cost	$ 1,215,000
Shelves and tail lift fitting charges	225,500
Vehicle registration charges	20,000
GPS fitting charges	30,000
Total capitalized cost of van	$ 1,490,500