JAIL! WILL ( Note : " This is a continuation of the Cookie Chronicle From Chapters I through 9 . ) CCCSNatalie 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 2010 , 0010 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 , 201 1 , and it will be ready for use on September 1 , 2011 . 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 ( a ) Determine the cost of the van . ( b ) - Prepare three depreciation tables for 201 1 , 2012 and 2013 : one for straight - line depreciation ( similar to the one 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 2011 : 45 , 000 miles in 2012 : 50 , 000 miles in 2013 ; 45 , 000 miles in 2014 ; 35 , 000 miles in 2015 : and 10 ,0010 miles in 2016 . Recall that Cookie Creations has a December 3 1 year-end .* ( C ) - What impact will the three methods of depreciation have on Natalie 's balance sheet at December 31 , 201 1 ? What impact will the three methods have on Natalie's income statement in 201 1 ?' ( d ) - What impact will the three methods of depreciation have on Natalie's income statement over the van's total 5 - year useful life ? ([` ) - WHAT METHOD OF DEPRECIATION WOULD YOU RECOMMEND NATALIE USE