Web Application Chapter 13 page 546

Nora Grandstaff is active in the Children's Ministry in the church where she is a member. She drives eight children to every service. Grandstaff enjoys helping the Children's Ministry, but her small car makes it difficult, so the church decided to buy a minivan which she could use to transport the children. Members of the church board visited the GMC homepage at www.gmc.com, and looked at a number of vehicles. They decided to take a closer look at the Safari. After more research, including a visit to www.gmc.com/safari/pricing.html, the board agreed on the all-wheel drive SLE model. Point your browser to the GMC Web site and answer the following questions:

1. According to the Web site, what is the current cost of the Safari?

2. The van is expected to have a useful life of five years, and a salvage value $4700. Using this information, prepare a depreciation schedule using the double-declining balance method of depreciation. Remember to first calculate the double-declining-balance rate.

Example	10 year useful life would be 1/10 = 10% X 2 = 20% double-declining-balance rate.
Note	Book value can not go below trade-in value. Round to the nearest dollar. See section 13.2 (pages 545-550) in your textbook.

Include the date of the information in your answer.

© Copyright 2000 Addison Wesley Longman, Inc.