Continuing Cookie Chronicle 9 Part 2 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 m er 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 lost 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, 2018, and it will be ready for use on September 1, 2018 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 Determine the cost of the van. Cost of van Prepare a depreciation table for straight-line depreciation. Recall that Cookie Creations has a December 31 fiscal year-end. End of Year Accumulated Depreciation Year Depreciable Cost Annual Depreciation Expense Book Value 2018 2019 2020 2021 2022 2023 What method should Natalie use for tax purposes? Natalie should use Is she required to use the same approach for financial reporting and tax reporting? Continuing Cookie Chronicle 9 Part 2 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 m er 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 lost 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, 2018, and it will be ready for use on September 1, 2018 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 Determine the cost of the van. Cost of van Prepare a depreciation table for straight-line depreciation. Recall that Cookie Creations has a December 31 fiscal year-end. End of Year Accumulated Depreciation Year Depreciable Cost Annual Depreciation Expense Book Value 2018 2019 2020 2021 2022 2023 What method should Natalie use for tax purposes? Natalie should use Is she required to use the same approach for financial reporting and tax reporting