Question 1 (20 marks) On 1 April 20x1, ABC Co. bought a new lorry and made the following payments in relation to it: Costs as per supplier's list $120,000 Less: Agreed discount 10.000 110,000 Delivery charge 1.000 Installation charge 4.000 Maintenance charge 4.000 Additional component to increase capacity 3.000 Spare parts 3.500 Total 125,500 Lorry is depreciated on the straight-line basis over a four-year life and the estimated residual value $38,000. ABC Co. prepare their accounts on 31 December each year, the company policy is to charge depreciation on a month for month basis. After exactly two years and three months, the lorry is out of order and sold for $23,000.- a) What amount should be used as the basis for depreciation of the lorry? (4 marks) b) What is the depreciable amount of the lorry? (4 marks) c) Calculate the depreciation on lorry for each of the years 20x1, 20x2 and 20x3. (12 marks) (Total 20 marks)