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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

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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 o 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 ann 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, and it will be ready for use on September 1, 2017. 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 Hermag 24 min. Straight-line depreciation Year Depreciable Cost Depreciation Expense Accumulated Depreciation Net Book Value MESSAGE HY INSTRUCTOR FULL SCR 2017 2018 2019 Double-declining-balance depreciation Vear NOV (Beg. of Year Depreciation Expense Accumulated Depreciation Net Book Value 2017 2018 2019 Units-of activity depreciation Year Units of Activity Depreciation Expense Accumulated Depreciation Net Book Value 2000- 20 0 3 Rohts Reserved. D e s CLG 2018 2019 Units-of activity depreciation Year Units of Activity Depreciation Expense Accumulated Depreciation Net Book Value 2017 2018 2019 Click if you would like to Show Work for this question: Can Showca By accessing this question Assistance, you will leam while you earn points based on the point Potential policy set by your Attempts % Ear onl core RE MG

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