1102AFE Accounting for Decision MakingTrimester 1, 2019 Assessable Homework 5 (Chapter 6) gm A luxury motor vehicle was purchased for $320,000 on 1St...
1102AFE Accounting for Decision Making—Trimester 1, 2019Assessable Homework 5 (Chapter 6) gm A luxury motor vehicle was purchased for $320,000 on 1St January, 2018. It is estimated that it has auseful life of 4 years and will then be sold for $20,000. The financial year ends on 31St December.For the diminishing balance method, the firm uses a 50% depreciation rate. (a) How much depreciation would be shown on the Income Statement for each year using thestraight-line method? (b) Calculate depreciation for the first 2 years using the diminishing balance method Year Bal. at beginning of year Rate Yearly depreciation on Bal. at end of yearIncome Statement 2018 50% 2019 50% (c) Complete the items below as they would appear on the Balance Sheet at 31 December, 2019. Straight Line 31 December 2019 S Diminishing Balance 31 December 2019 $ Motor Vehicle Motor Vehicle Less AccumulatedDepreciation Less AccumulatedDepreciation Written down value Written down value
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