Canada Ltd purchased a vehicle costing $52 000. It is expected to have a residual value of $12 000 at the end of its useful life of 4 years or 200 000 kilometres.

A. Assume the vehicle was purchased on 1 July 2022 and that the accounting period ends on 30 June. Calculate the depreciation expense for the year 202122 using each of the following depreciation methods:

1. straight-line

2. units of production (assume the van was driven 78 000 kilometres during the financial year).