3.4. Abdullah has a motorcycle that he wants to use for deliveries which he bought on 1 March 2015 and paid $2000 for. The motorcycle has steadily depreciated with 18% per year. Abdullah has decided to sell his motorcycle and buy a new one using the salvage value he will receive.

3.4.1 Calculate the carrying value of the asset at the end of February 2020.

3.4.2 The new motorcycle that he wants to purchase is priced at $2500. How much will he pay additionally in order to make the purchase?