Natalie 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 $$1,500.$ She expects the van to last about $5$ years, and she expects to drive it for $200,000$ miles. The annual cost of vehicle insurance will be $$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 $15,2020,$ and it will be ready for use on September $1,2020.$

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$)$

Determine the cost of the van.

Cost of the van $