D Natalie is the CEO of Suyden Company. She is thinking of buying a van that will be used only fox business. She estimates that she can buy the van for the price shown below. Natalie would spend an additional amount (shown below) to have the van painted As well, she wants the back seat of the van removed so that she will have lots of room to transport her juicer inventory and smoothies and supplies The cost of taking out the back seat and installing shelving units is estimated at the price shown below. She expects the van to last about five years and to be driven for 200,000 km The annual cost of vehicle insurance is also included bekw Natale estimates that at the end of the five-year useful life, the van wil sel for $5,000 Assume that she will buy the van on March 2, 2022 Natalie is concerned about the impact of the van's cost and related depreciation on Sugden's income statement and balance sheet. All transactions will be completed in cash It is estimated that the van will be driven as follows. 10,000 km in 2022, 37,500 km in 2023, 40 000 km in 2024, 47,500 km in 2025, 35,000 kan in 2026, and 30.000 km in 2027 Sugden Company has a May 31 year end. Purchase price of the van $22.000 Your first step is to enter in your full name (first name then last name) using proper capitalization on the Instructions" page. 7 Painting the van $3,000 5970 Shelving unit 10 11 Vehicle insurance $1,440 $5,000 Residual value Useful life of the van 5 years B C A Useful life of the van C 5 years Total mileage over the life of the 200,000 km Date of purchase March 2, 2022 Company's fiscal year-end May 31, 2022 Useage of van: 2022 2023 2024 2025 2026 2027 Total 1 2 Part (h) selling price of van 3 4 Part () revised residual value 5 6 Part (j) revised total useful life 10,000 km 37,500 km 40,000 km 47,500 km 35,000 km 30,000 km 200,000 3 $7500 $4,000 Z/ years Engboard Alignment Number D36 X A Amount H A B E 11 2 c) Prepare depreciation schedules for the life of the van under the following depreciation methods: 1. straight-line. 2 diminishing-balance at double the straight-line rate. 3. units-of-production. 3 4 5 1. Straight-line method 6 End of Year Depreciable Depreciation Depreciation Accumulated Carrying 7 Amount Rate Expense Depreciation Amount 8 9 2022 Amount Rate Formula Amount Formula 0 2023 Amount Rate Formula Amount Formula 2024 Amount Rate Formula Amount Formula 2 2025 Amount Rate Formula Amount Formula 3 2026 Amount Rate Formula Amount Formula 4 2027 Amount Rate Formula Amount Formula 5 Total Formula Year 7 8 2. Diminishing-balance at double the straight-line rate method of Vaar Instructions Data Answer LG Paste BIU a. A 3 Merge & Center $ - % Con Form Clipboard Font Alignment Number D6 Amount B D 37 38 2. Diminishing-balance at double the straight-line rate method 39 End of Year Carrying Amount Depreciation Depreciation Accumulated Carrying 40 Year (Beg of year) Rate Expense Depreciation Amount 41 42 2022 Amount Rate Formula Amount Formula 43 2023 Amount Rate Formula Amount Formula 44 2024 Amount Rate Formula Amount Formula 45 2025 Amount Rate Formula Amount Formula 46 2026 Amount Rate Formula Amount Formula 47 2027 Amount Rate Formula Amount Formula 48 Total Formula 49 50 51 52 3. Units-of-production method 53 End of Year Units of Depreciation Depreciation Accumulated Carrying 54 Year Production Cost/Unit Expense Depreciation Amount 55 56 2022 Quantity Rate Formula Amount Formula 57 2023 Quantity Rate Formula Amount Formula instructions Data Answer 51 Meige & Center $ Foun Chipboard Font Alignment Numbet D6 f Amount H B D 51 52 3. Units-of-production method 53 End of Year Units of Depreciation Depreciation Accumulated Carrying Year Production Cost/Unit Expense Depreciation Amount 55 56 2022 Quantity Rate Formula Amount Formula 57 2023 Quantity Rate Formula Amount Formula 58 2024 Quantity Rate Formula Amount Formula 59 2025 Quantity Rate Formula Amount Formula 60 2026 Quantity Rate Formula Amount Formula 61 2027 Quantity Rate Formula Amount Formula 62 Total Formula 63 64 d) Which method of depreciation would result in the highest profit for the year ended May 31, 2023? (Select your answer from the drop-down menu) 65 66 Over the life of the asset? (Select your answer from the drop-down menu) 67 68 69 Instructions Data Answer Read Arial 12 LS A A a A- 0 an khi + Merge Center Currency $ . %1%8-88 Paste Til 3 Condition Formatting Clipboard Font Alignment Numbet Tu D6 X Amount A B D G H e) Which method would result in the highest carrying amount for the van for the year ended May 31, 2023? (Select your answer from the drop-down menu) 70 71 Over the life of the asset? (Select your answer from the drop-down menu) 72 78 74 f) Which method of depreciation would you recommend that Natalie use? (Select your answer from the drop- 75 down menu) 76 Explain briefly why you selected that method. 77 78 79 g) What happens if the actual hours of operation or units produced do not correspond to the numbers that 80 were estimated in setting the rate? Instructions Data