Natalie is also thinking of buying a van that will be used only for business. The cost of the van is estimated at $40,000. Natalie would spend an additional $3,000 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 $2,000. She expects the van to last about 5 years, and she expects to drive it for 228,750 miles. The annual cost of vehicle insurance will be $2,736. Natalie estimates that at the end of the 5-year useful life the van will sell for $8,400. Assume that she will buy the van on August 15, 2022, and it will be ready for use on September 1, 2022 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. (a) Your answer is correct. Determine the cost of the van Cost of the van 45000 Prepare three depreciation tables for 2022, 2023 and 2024: one for straight-line depreciation (similar to the one in Illustration 10-10), one for double-declining balance depreciation (Illustration 10-14), and one for units-of-activity depreciation (Illustration 10-12). For units-of-activity, Natalie estimates she will drive the van as follows: 17.100 miles in 2022:51,300 miles in 2023; 57,000 miles in 2024; 57,000 miles in 2025; and 46,350 miles in 2026. Recall that Cookie Creations has a December 31 year-end. (Round depreciation cost/unit to 3 decimal places, eg. 0.225) Straight-line depreciation Depreciable Costs 45000 Depreciation Expense Accumulated Depreciation Book Value 45000 2440 $ 2440 45000 7320 45000 7320 42560 9760 35240 17080 27920 Double-declining-balance depreciation BV (Beg, of Year) 45000 $ Depreciation Expense Accumulated Depreciation Book Value 45000 $ Units-of activity depreciation Units of Activity Depreciation Expense Accumulated Depreciation Book Value 17100 $ 2736 $ 2736 51300 $7000 8208 9120 45000 42264 10944 34056 20064 24936