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5. The following information is available from the SFP at 31 December 2021: Motor vehicles: Cost 135,000 Motor vehicles: Accumulated depreciation 75,300 Page 8 of
5. The following information is available from the SFP at 31 December 2021: Motor vehicles: Cost 135,000 Motor vehicles: Accumulated depreciation 75,300 Page 8 of 9 The company sold one of the vehicles on 1 January 2022 for 16,000. It had originally bought the car on 1 January 2020 for 30,000. The company depreciates vehicles at 30% per annum on a reducing balance basis. a) Calculate the gain or loss on disposal. Clearly specify whether your answer is a gain or a loss 3 marks b) Calculate the carrying amount of all vehicles at 31 December 2022 3 marks Total 6 marks
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