QUESTION 2 Pusher commenced business on 1 January 2010 with two (2) lorries - A (costs 1,000) and B (costs 1,600). On March 3, 2011 - A was written off in an accident and Pusher received 750 from insurance company. This vehicle was replaced on 10 March 2011 by C which costs 2,000. A full year's depreciation is charged in the year of acquisition and no depreciation is charged in the year of disposal. Instructions: a. You are required to show the appropriate extracts from Pusher's statement of financial position and income statement for the 3 years to 31/12/00, 31/12/11 and 21/12/02 assuming that: i. The vehicles are depreciated at 20% on the straight line method. ii. The vehicles are depreciated at 25% on the reducing balance method. b. Comment briefly on the pros and cons of using the straight line and reducing balance methods of depreciation