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i am so lost please Continuing Cookie Chronicle 9 Natalie is thinking of buying a van that will be used only for business. The cost
i am so lost please
Continuing Cookie Chronicle 9 Natalie is thinking of buying a van that will be used only for business. The cost of the van is estimated at s36,500. 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 wil 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 crive it for 200,000 miles. The annual cost of vehicle insurance will be 52,400. Natalie estimates that at the end of the 5-year useful life the van will sel for $7,500. Assume that she will buy the van on August 15, 2016, and it will be ready for use on September 1, 2016. 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 the van Prepare three depreciation tables for 2016, 2017, and 2013; one for straight-line depreciation (similar to the ono in Illustration 9-10), one for double-declining balance depreciation (Illustration 9-14), and one for units-of-activity depreciation (Illustration 9-12). For units-of-activity, Natalie estimates she will drive the van as follows: 15,000 miles in 2016; 45,000 miles in 2017; 50,000 miles in 2018; 45,000 miles in 2019 40,000 miles in 2020. 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 Cost Depreciation Expense Accumulated Depreciation Net Book Value 2016Step by Step Solution
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