5. UMADSS-15-3 IAN 22 Exam Paper (Online) - Word Sign in ta File Home Insert Design Layout References Mailings Review View Help Tell me what you want to do 2. Share =.=.= s. Calibri (Body - 12 (- XA - Aa- A BIU - * * .". A. d Title Subtitle Subtle Em Emphasis Find - Replace Select Paste Format Painter Clipboard ,,E, 1 Caption List Para 1 ... 1 Normal 1 No Spac Heading 1 = Font Paragraph P Styles Editing SECTION A Question 1 Karl PLC has the following capital structure: : 100,000 ordinary shares of 1 each Share premium account Retained earnings Shareholders' equity E 100,000 60,000 240,000 400,000 Required Show Karl PLC's capital structure following: (a) A '1 for 2' bonus issue | (3 marks) and (b) A rights issue of 1 for 5' at 1.25 per share, immediately following the bonus issue, assuming all rights taken up (3 marks) 3 (Total: 6 marks) Page 3 of 13 2471 words 3 1204 Type here to search O (? 64F Mostly sunny 2:12 PM 1/18/2022 5. UMADSS-15-3 IAN 22 Exam Paper (Online) - Word Sign in ta File Home Insert Design Layout References Mailings Review View Help Tell me what you want to do 2. Share E' E Calibri (Body - 12 ( - Aa BIU - * * .". A. Paste Format Painter Clipboard d 1 Caption List Para... 1 Normal 1 No Spac Heading 1 Subtitle Subtle Em Emphasis Find - Replace Select - ,E, Title = Font Paragraph Styles Editing Total: 6 marks) Question 2 Daisy Ltd wishes to use the reducing balance method of depreciation in order to account for the cost of its new delivery vehicle. The vehicle cost 40,000, and annual depreciation is to be charged on a 20% reducing balance basis. Required (a) Calculate Daisy Ltd's depreciation charge in respect of the new delivery vehicle for the first two whole years of its life. (2 marks) (b) Explain, with reference to the relevant accounting concept, why a company such as Daisy Ltd may wish to use the reducing balance method of depreciation for an asset such as a delivery vehicle. (3 marks) (Total: 5 marks) UMAD5S-15-3 Page 3 of 13 (maximum for (b) 150 words) Page 3 of 13 2471 words 3 1204 Type here to search O m3 64F Mostly sunny (? 2:16 PM 1/18/2022