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for certain assets. 21.11A C. Harvey, a sole trader, purchased a delivery van on 1 March 2020 for 11,360 and some new equipment on 1
for certain assets. 21.11A C. Harvey, a sole trader, purchased a delivery van on 1 March 2020 for 11,360 and some new equipment on 1 September 2020 for 7,000. He expects that the van will have a useful life of four years, after which it should have a trade-in value of 2,000. The scrap value of the equipment after ten years' use is estimated to be 1,000. Harvey charges depreciation using the straight-line method. Required: What should the depreciation expense be in relation to these two items for Harvey's financial year ended 30 November 2020 assuming that: (a) He charges a full year's depreciation in the year of purchase and none in the year of sale. (6) He charges depreciation on a monthly basis
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