Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 (8 marks) On 1 July 2011 Sprintfast Couriers, which has a year-end of 30 June, purchased a delivery truck for use in its

image text in transcribed

Question 1 (8 marks) On 1 July 2011 Sprintfast Couriers, which has a year-end of 30 June, purchased a delivery truck for use in its courier operations at a cost of $65 000. At the end of the truck's useful life it is expected to have a residual value of $5000. During its six-year useful life, Sprintfast Couriers Limited expected the truck to be driven 246 000 kilometres. Required Calculate the annual depreciation charge for each of the six years of the truck's life using the following methods: (a) the straight-line method (b) the sum-of-digits method (c) the declining-balance method (d) the units-of-production method using kilometres as the basis of use and assuming the following usage: Year 2012 2013 2014 2015 2016 2017 28 000 34 000 42 000 55 000 68 000 19 000 246 000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Standards On Auditing An Institutional Driver For Audit Quality

Authors: Dries Schockaert

1st Edition

2874035467, 978-2874035463

More Books

Students also viewed these Accounting questions