property plant and equpment

Shark Limited is a national carrier of fresh produce. Due to the high incidence of road accidents, the government introduced legislation that requires all long distance vehicles to undergo major roadworthiness inspections every two years. The details of one such vehicle include the following: - The truck was purchased on 1 October 208 for C320 000. The following significant parts were identified: - Its engine was allocated a cost of C210 000 and had an expected lifespan of 300000km after which, it is expected to have no residual value. - Its chassis was allocated a cost of C110 000 and had an estimated residual value of nil and a useful life of 5 years. - The first major inspection was performed on 31 December 20X8, the day before the legislation became effective, at a cost of C40 000 . - The truck travelled 40000km during 208 and 97000km during 209. - On 1 July 209, the directors of Shark put the truck through an urgent major roadworthiness inspection for the safety of its employees. This inspection was not legally required but the decision was made due to a local media report where the inspectors who had performed the previous inspection were implicated in a fraud involving the issuance of fake inspection certificates. This inspection cost C72000. Required: Prepare all journals relating to the truck for the years ended 31 December 208 and 209. Ignore tax Chapter 7