So, I have the cost of the Van: (36500+2500+1500) = 40500 and this turned out correct.

For the straight-line depreciation table, I believe I have it filled out properly, but I don't know.

I figured the Depreciable costs as such: Van Cost - End of Life Value: (40500-7500) = 33000

Straight-Line Depreciation: (40500-7500)/5 : Simplify: 33000/5, Simplify: 6600

Depreciation after 4 Mos: 6600((12-8)/12), Simplify: 6600(4/12), Simplify: 2200 :: Where 12 represents December and 8 represents August

Year	Depreciable Costs	Depreciation Expense	Accumulated Depreciation	Net Bk Value
				40500
2020	33000	2200	2200	38300
2021	33000	6600	8800	31700
2022	33000	6600	15400	25100

Straight-Line Depreciation Percent = 100% / Useful Life:Straight-Line Depreciation%: 0.2

Double-Declining Depreciation Rate: 0.4

Year	NBV (Beg. of Year)	Depreciation Expense	Accumulated Depreciation	Net Bk Value
				40500
2020	40500	4400	4400	36100
2021	36100	???	???	???
2022	33000	???	???	???

I could really use an explanation as to how the figures are calculated for Double-Declining as well as for the Units of Activity

Year	Units of Activity	Depreciation Expense	Accumulated Depreciation	Net Bk Value
				40500
2020	15000	???	???	???
2021	45000	???	???	???
2022	50000	???	???	???

I have read the chapter and I am still stuck on this problem after a couple of days. Any help w/this is greatly appreciated. I have found other problems very similar to this one, while they give the answer, they fail to provide an explanation as to how the answers were arrived at. I really want to understand this material. Thanks!

Cookie Creations 10 a-b,c,e (Part Level Submission) Natalie is thinking of buying a van that will be used only for business. The cost of the van is estimated at $36,500. Natalie would spend an additional $2,500 to have the van painted. In addition, she wants the back seat of the van removed so that she will have lots of room to transport her mixer inventory as well as her baking supplies. The cost of taking out the back seat and installing shelving units is estimated at $1,500. She expects the van to last about 5 years, and she expects to drive it for 200,000 miles. The annual cost of vehicle insurance will be $2,400. Natalie estimates that at the end of the 5-year useful life the van will sell for $7,500. Assume that she will buy the van on August 15, 2020, and it will be ready for use on September 1, 2020. Natalie is concerned about the impact of the van's cost on her income statement and balance sheet. She has come to you for advice on calculating the van's depreciation. Your answer is correct. Determine the cost of the van. Cost of the van 40500 Prepare three depreciation tables for 2020, 2021 and 2022: one for straight-line depreciation (similar to the one in Illustration 10-9), one for double-declining balance depreciation (Illustration 10-10), and one for units-of-activity depreciation (Illustration 10-11). For units-of-activity, Natalie estimates she will drive the van as follows: 15,000 miles in 2020; 45,000 miles in 2021; 50,000 miles in 2022; 50,000 miles in 2023; and 40,000 miles in 2024. Recall that Cookie Creations has a December 31 year-end. (Round depreciation cost/unit to 3 decimal places, e.g. 0.225.) Straight-line depreciation Year Depreciable Costs Depreciation Expense Accumulated Depreciation Net Book Value 2020 2021 2022 Double-declining-balance depreciation Year NBV (Beg. of Year) Depreciation Expense Accumulated Depreciation Net Book Value 2020 2021 2022 Units-of activity depreciation Year Units of Activity Depreciation Expense Accumulated Depreciation Net Book Value 2020 2021 2022