CONFIDENTIAL QUESTION 2 (12 MARKS) The financial information given below is related to fixed assets owned by Vital Limited for an accounting period ended 3151 December 2019. . Equipment at cost worth of $84 000. Accumulated depreciation of equipment worth of $13 000. Motor vehicle at cost worth of S14 000. Additional information during the current period: 1. The company closes its books of account on 31 December every year. 2. On 15 February 2020, the company bought new equipment on credit from Superb Resources, $12 000 and the cost of installing this equipment was $1 500. 3. On 15 April 2020, the company sold its motor vehicle for $8 000. The motor vehicle was purchased on 1 July 2018. 4. It is the policy of the company to charge depreciation expense as follows: Equipment Motor Vehicle Straight line method at 20% on cost per annum Declining balance method at 25% depreciation rate 5. Depreciation on all fixed assets is charged based on monthly ownership of assets. 6. Round-off your answers to the nearest dollars. REQUIRED a) Compute Net Book Value (NBV) of equipment for the year ended 31st December 2020. (5 Marks) b) Compute any gain or loss on the disposal of motor vehicle at 1st April 2020. (5 Marks) c) Prepare a journal entry to record the disposal of motor vehicle. (2 Marks) 6