Question 2: Fantastic Tiling Corporation is a tiling manufacturer. Jon Tiler, the founder of the company, recently approved the purchase of a new truck to support the company's expected growing business. The company's purchasing manager quickly acquires a truck advertised at a price of $60,000 and receives a 10% discount. She also had to pay $1,500 to customise the loading platform, $500 registration for the truck being delivered from Perth $1.700 for vehicle related state stamp duty costs, $1,500 for non-compulsory car insurance costs. Fantastic Tiling expects to use the truck for 4 years, and estimates that it will have a salvage value of S3,000 at the end of its 4 year use. She paid cash for all the above costs. Of the three possible depreciation methods (straight line, reducing balance and units of production depreciation methods), the accounting department determines that the straight line method is the best method to use for depreciating the truck. The truck will travel approximately 60,000 km's over the 4 years estimated life. The company is also replacing the machine used for glazing. The old machine was originally recorded at a cost of $110,000 and depreciated over 10 years straight line with no salvage value. The statement of financial position shows a book value net of accumulated depreciation at the beginning of the financial year of $44,000. The cost of the new machine is $150,000 and Jon negotiated to trade in the old machine for $30,000 and pays cash for the balance