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Q2 Ali wants to sell a sedan car which has been used for five years. The vehicle cost him RM160,000 when it was purchased
Q2 Ali wants to sell a sedan car which has been used for five years. The vehicle cost him RM160,000 when it was purchased brand new. The car is estimated to have a scrap value of RM30,000 after 10 years. He asked two agents to sell his vehicle. Agent A uses the declining balance method to calculate depreciation while agent B uses the sum-of-year digits method. (a) (b) Construct the depreciation schedule for the first five years for each method. (Reminder: Round it off to the nearest two decimal places for the rate of depreciation, r) (15 marks) (CLO2:PLO2:C2)(CL02:PLO7:C2) Which agent should Ali choose to sell his car at the end of five years? Why? (2 marks) (CLO2:PLO2:C4)(CLO2:PLO2:C4)
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