Mr. Smith operates a courier service in Brampton, Toronto and his financial year ends on December 31. On January 1, 2019 he issued a cheque to buy a new delivery vehicle for $92,000 for use in his business. The vehicle's useful life is estimated at 5 years and its trade-in value at that point is estimated as being $2,000. REQUIRED a) Using the following format, prepare a statement showing the effect of adopting the straight- line method of depreciation: Year ending December 31 Depreciation charge for the year Net book value of the Delivery Vehicle at year end S 2019 2020 2021 2022 2023 (50 marks)

b) Using the straight line method of depreciation, draw up, as they would appear in Smith's ledger for the year ending December 31 2019: Delivery Vehicle Account ii) Provision for Depreciation Account - Delivery Vehicle