ANSWER ALL QUESTIONS 1. You are the Financial Director of Lagbajah Company Limited and in your end of year report, it was discovered that your preferred method of depreciation is the Reducing Balance method A Board member with some financial background thinks the assets of the company are better depreciated with the Straight Line method. For your defense, argue out four (4) points or reasons why the Reducing Balance method is a better choice of depreciating the assets thane the Straight Line method. 2. Bilbo Baggins acquired two non-current assets for cash on 1st August 2015 for use in his party organizing business Details Cost (6) A 25-year lease on a shop 400,000 A Gold Sprayed Fountain 8,000 The Gold Sprayed Fountain is to be depreciated at 25% per annum using the Reducing balance method The fountain was disposed off after nearly three years of use at cost of 5,120 on 31st March 2018 Note: A full year of depreciation is charged in the year of acquisition and none in the year of disposal Required: Show the ledger account entries for these assets for the years ending 31st October 2015, 2016, 2017 and 2018 3. The record of the assets of Lagbajah Enterprise showed the following: Motor Vehicles Details Dates Cost) Land Rover 1st March, 2010 840,000 Peugeot 505 1st July, 2011 530,000 Peugeot 504 1st January, 2012 510,000 Nissan Rover 1st September, 2013 650,000 ANSWER ALL QUESTIONS 1. You are the Financial Director of Lagbajah Company Limited and in your end of year report, it was discovered that your preferred method of depreciation is the Reducing Balance method. A Board member with some financial background thinks the assets of the company are better depreciated with the Straight Line method For your defense, argue out four (4) points or reasons why the Reducing Balance method is a better choice of depreciating the assets than the Straight Line method. 2. Bilbo Baggins acquired two non-current assets for cash on 1st August, 2015 for use in his party organizing business. Details Cost (2) A 25-year lease on a shop 400,000 A Gold Sprayed Fountain 8,000 The Gold Sprayed Fountain is to be depreciated at 25% per annum using the Reducing balance method The fountain was disposed off after nearly three years of use at cost of 5,120 on 31st March 2018, Note: A full year of depreciation is charged in the year of acquisition and none in the year of disposal Required: Show the ledger account entries for these assets for the years ending 31st October 2015, 2016, 2017 and 2018. 3. The record of the assets of Lagbajah Enterprise showed the following: Motor Vehicles Cost Details Dates Land Rover 1st March, 2010 840,000 530,000 Peugeot 505 1st July, 2011 Peugeot 504 1st January, 2012 510,000 Nissan Rover 1st September, 2013 650,000