Continuing Cookie Chronicle 9 (Part Level Submission) 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, 2019, and it will be ready for use on September 1, 2019. 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) ZYour answer has been saved and sent for grading. See Gradebook for score details. Determine the cost of the van. Cost of the van 40,500 LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 1 of 1 used Your answer has been saved and sent for grading. See Gradebook for score details. Prepare three depreciation tables for 2019, 2020, and 2021: one for straight-line depreciation (similar to the one in Illustration 9-10), one for double-declining balance depreciation (Illustration 9-14), and one for units-of-activity depreciation (Illustration 9-12). For units-of-activity, Natalie estimates she will drive the van as follows: 15,000 miles in 2019; 45,000 miles in 2020; 50,000 miles in 2021; 45,000 miles in 2022; 40,000 miles in 2023. 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 Year Depreciable Cost Depreciation Expense Accumulated Depreciation Net Book Value 40500 2019 40500 2200 2200 38300 2020 40500 6600 8800 31700 2021 40500 6600 15400 25100 Double-declining-balance depreciation Year NBV (Beg. of Year) Depreciation Expense Accumulated Depreciation Net Book Value 40500 $ 2019 40500 5400 5400 35100 $ 2020 40500 14040 19440 21060 2021 40500 8424 27864 12636 Units-of activity depreciation Year Units of Activity Depreciation Expense Accumulated Depreciation Net Book Value 40500 $ 2019 40500 2475 2475 38025 $ $ 2020 40500 7425 9900 30600 2021 40500 8250 18150 22350 LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 1 of 1 used What impact will the three methods of depreciation have on Natalie's balance sheet at December 31, 2019? What impact will the three methods have on Natalie's income statement in 2019? Straight-Line Double-declining Balance Units-of-Activity Cost of asset $ $ $ Accumulated depreciation Net book value $ $ Depreciation expense $ $ Lowest amount of net income Lowest amount of stockholders' equity Lowest net book value Greatest amount of net income Greatest amount of stockholders' equity Greatest net book value Attempts: 0 of 1 used