Question 17 0.96/1 View Policies Show Attempt History Current Attempt in Progress 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. Your answer is correct. Determine the cost of the van. $ Cost of the van 40500 eTextbook and Media Your answer is partially correct Prepare three depreciation tables for 2020, 2021 and 2022: one for straight-line depreciation (similar to the one in Illustration 10-9), one for double-declining balance depreciation (Illustration 10-10), and one for units-of-activity depreciation (Illustration 10-11). For units-of-activity, Natalie estimates she will drive the van as follows: 15,000 miles in 2020; 45,000 miles in 202 1; 50,000 miles in 2022; 50,000 miles in 2023; and 40,000 miles in 2024. Recall that Cookie Creations has a December 31 year-end. (Round depreciation cost/unit to 3 decimal places, e.g. 0.225.) Straight-line depreciation Accumulated Depreciation Year Depreciable Costs Depreciation Expense Net Book Value $ 40500 $ $ 2020 $ 40500 2200 2200 38300 2021 38300 6600 8800 31700 2022 15400 31700 6600 25100 Double-declining-balance depreciation NBV(Beg. of Year) Accumulated Depreciation Depreciation Expense Year Net Book Value $ 40500 $ 2020$ 40500 5400 5400 35100 21060 19440 2021 35100 14040 12636 2022 21060 8424 27864 Units-of activity depreciation Units of Activity Accumulated Depreciation Net Book Value Year Depreciation Expense $ 33000 $ 15000 2020 2475 2475 30525 2021 45000 7425 9900 23100 2022 50000 8250 18150 14850