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Natalie is also thinking of buying a van that will be used only for business. The cost of the van is estimated at $ 3
Natalie is also thinking of buying a van that will be used only for business. The cost of the van is estimated at $ Natalie would
spend an additional $ 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 $ She expects the van to last her about years, and she expects to drive it for miles. The annual
cost of vehicle insurance will be $ Natalie estimates that at the end of the year useful life the van will sell for $ Assume
that she will buy the van on August and it will be ready for use on September
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 straightline depreciation. Recall that Cookie Creations has a December fiscal yearend, so
annual depreciation depreciation will have to be prorated for the portion of the year the van is used in and
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