D$.$ Long$-$Term Assets

If Lidia is able to obtain the new loan, she is looking to purchase a company cargo van

to help haul the merchandise inventory, as well as purchase her own container machine

$($a machine that makes containers so she can save on her own purchase cost$).$ She

has found the cargo van she wants to purchase, as well as the machine she$$d like to

buy, but wants to look ahead at which depreciation methods she should use that will

help maximize the use of each, as well as increase the income after depreciation.

Utilizing the information below, calculate the depreciation expense for the first two years

using all three main depreciation methods $($Straight$-$Line, Units of Production, and

Double$-$Declining$-$Balance$)$ for both the cargo van and the machine. Be sure to show

your calculations. Round all dollar amounts to the nearest cent.

Cargo Van Price $$26,000$ Machine Price $$48,000$

Salvage value $$2,000$ Salvage value $$3,000$

Useful life $10$ years Useful life $8$ years

Total miles $90,000$ Total hours $13,000$

Yr $1$ miles $12,100$ Yr $1$ hours $1,250$

Yr $2$ miles $9,400$ Yr $2$ hours $1,460$