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** Plaaz Ltd was formed on 1 July 2012 to provide delivery services for packages to be taken between the city and the airport. On

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** Plaaz Ltd was formed on 1 July 2012 to provide delivery services for packages to be taken between the city and the airport. On this date, the company acquired a delivery truck from Frensdorf Trucks. The company paid cash of 50 ooo to Frensdorf Trucks, which included government charges of 600 and registration of 400. Insurance costs for the first year amounted to 1200. The truck is expected to have a useful life of 5 years. At the end of the useful life, the asset is expected to be sold for 24 000, with costs relating to the sale amounting to 400. The company went extremely well in its first year, and the management of Plaaz Ltd decided at 1 July 2013 to add another vehicle, a flat-top, to the fleet. This vehicle was acquired from a liquidation auction at a cash price of 30 000. The vehicle needed some repairs for the elimination of rust (cost 2300), major servicing to the engine (cost 480) and the replacement of all tyres (cost 620). The company believed it would use the flat-top for another 2 years and then sell it. Expected selling price was 15 000, with selling costs estimated to be 400. On 1 July 2013, both vehicles were fitted out with a radio communication system at a cost per vehicle of 300. This was not expected to have any material effect on the future selling price of either vehicle. Insurance costs for the 2013-14 period were 1200 for the first vehicle and 900 for the newly acquired vehicle. All went well for the company except that, on 1 August 2014, the flat-top that had been acquired at auction broke down. Plaaz Ltd thought about acquiring a new vehicle to replace this one but, after considering the costs, decided to repair the flat-top instead. The vehicle was given a major overhaul at a cost of 6500. Although this was a major expense, management believed that the company would keep the vehicle for another 2 years. The estimated selling price in 3 years' time is 12 000, with selling costs estimated at 300. Insurance costs for the 2014-15 period were the same as for the previous year. Required Prepare the journal entries for the recording of the vehicles and the depreciation of the vehicles for each of the 3 years. The financial year ends on 30 June

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