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plz show me specific fomula,and dont handwriting Natalie is the CEO of Sugden Company. She is thinking of buying a van that will be used
plz show me specific fomula,and dont handwriting
Natalie is the CEO of Sugden Company. She is thinking of buying a van that will be used only for business. She estimates that she can buy the van for the price shown below. Natalie would spend an additional amount (shown below) to have the van painted. As well, she wants the back seat of the van removed so that she will have lots of room to transport her juicer inventory and smoothies and supplies. The cost of taking out the back seat and installing shelving units is estimated at the price shown below. She expects the van to last about five years and to be driven for 200,000 km. The annual cost of vehicle insurance is also included below. Natalie estimates that at the end of the five-year useful life, the van will sell for $5,000. Assume that she will buy the van on March 2, 2022. Natalie is concerned about the impact of the van's cost and related depreciation on Sugden's income statement and balance sheet. All transactions will be completed in cash. It is estimated that the van will be driven as follows: 10.000 km in 2022, 37.500 km in 2023,40,000 km in 2024, 47.500 km in 2025, 35,000 km in 2026, and 30.000 km in 2027 Suqden Company has a Ma, 31 gear end. Purchase price of the van $23,000 Painting the van $3,000 Shelving unit $1050 Vehicle insurance $1,440 Residual value $5,000 Useful life of the van 5 years 200.000 km Total mileage over the life Date of purchase Company's fiscal year-end March 2, 2022 May 31 2022 Useage of van: 2022 2023 2024 2025 2026 2027 Total 10,000km 37,500km 40,000 km 47 500 km 35,000 km 30,000km 200,000 Part (h) selling price of van $7.475 $4,000 Part (i) revised residual value Part (i) revised total useful til 7 years a) Determine the cost of the van. Item:Step by Step Solution
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