QUESTION $2$

Tim Company purchased a delivery truck for P$50,000$ on January $1,2021,$ with an estimated useful

life of $8$ years and a residual value of P$5,000.$ The company uses the straight$-$line depreciation

method.

a$.$ Calculate the depreciation that should be recorded on the income statement of the company for

the year ended $31$ April $2024.(4$ marks$)$

b$.$ Calculate the accumulated depreciation that should be recorded on the balance sheet on $31$

April for the delivery truck. Show your calculations. $(5$ marks$)$

c$.$ Calculate the net book value of the delivery truck on $31$ April $2024,(3$ marks$)$