CCC9 Natalie is also thinking of buying a van that will be used only for business. The cost of the van is estimated at $38,500. 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 her about 5 years, and she expects to drive it for 100,000 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 $6,500. Assume that she will buy the van on August 15, 2015, and it will be ready for use on September 1, 2015. Natalie is concerned about the impact of the vans cost on her income statement and balance sheet. She has come to you for advice on calculating the vans depreciation. Instructions (a) Determine the cost of the van. (b) Prepare a depreciation table for straight-line depreciation (similar to the one in Illustration 9-9). Recall that Cookie Creations has a December 31 fiscal year-end.

STRAIGHT - LINE DEPRECIATION
	Computation				End of Year
				Annual
		Depreciable	Depreciation	Depreciation	Accumulated	Book
	Years	Cost	Rate	Expense	Depreciation	Value
	2015	36,000		2,400	2,400	40,100
	2016	36,000		7,200	9,600	32,900
	2017	36,000		7,200	16,800	25,700
	2018	36,000		7,200	24,000	18,500
	2019	36,000		7,200	31,200	11,300
	2020	36,000		4,800	36,000	6,500
			Total Exp.	36,000

**I am not sure what to put for depreciation rate** and is this correct so far?