CONTINUING COOKIE CHRONICLE (Note: This is a continuation of the Cookie Chronicle from Chapters I through 9.} CCC9Natalie is thinking of buying a van that will be used only for business. The cost of the van is estimated at $36,5DD. Natalie would spend an additional $2,501} to have the van painted. In additionI 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 halting supplies. The cost of taking out the back seat and installing shelving units is estimated at $ | ,EDIl. She expects the van to last about 5 years, and she expects to drive it for EDDJIlD miles. The annual cost of vehicle insurance will be SEMI}. Natalie estimates that at the end of the 5year usell life the van will sell for $15M. Assume that she will buy the van on August 15, EDI l, and it will be ready for use on September I. EDI I. 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. Instructions {:1} Determine the cost of the van. [b] Prepare three depreciation tables for ED] l, EDlE and EDIE: one for straightline depreciation {similar to the one in Illustration 9 ID), one for doubledeclining balance depreciation {Illustration 9 l4), and one for unitsrof activity depreciation {Illustration 912}. For units-ofactivity. Natalie estimates she will drive the van as follows: l5,DDD miles in ED] l; 45,DDD miles in EDIE; EDDIE} miles in ED] 3; 45,0110 miles in EDI4; 35.{Il[l miles in EDIE; and lDlD miles in EDl. Recall that Cookie Creations has a December 3t yearend. {c} JWbat impact will the three methods of depreciation have on Natalie's balance sheet at December 3 l, EDI I? What impact will the three methods have on Natalie's income statement in ED] [1' [d] 'What impact will the three methods of depreciation have on Natalie's income statement over the van's total 5year use life\"? (E) -WHAT METHOD OF DEPRECIATION WOULD YOU RECOMMEND NATALIE USE