Question 2(A)	List price of truck (including registration tax)	48,000
	Discount given	2,500
	Insurance	800
	Road Tax	1,000
	Certificate of entitlement to own a vehicle	35,000
	Painting of company logo on truck	500
	Estimated petrol usage per month	1,000
	Driver's salary per month	2,800
	Maintenance and servicing per month	350
	Installation of a hydraulic lift to facilitate loading/unloading	2,000

The estimated useful life of the truck is 5 years. The company which sold the truck had agreed to take back the truck for $13,000 at the end of the useful life. On 1 January 2023, the company spent $5,500 to completely overhaul the engine. As a result, the useful life of the truck was extended by 2 years but the resale value at the end of the useful life is expected to be $10,000. The company planned to change the method of depreciation to the double-declining method with effect from 1 January 2023.

Question 2a Determine the acquisition cost of the delivery truck, giving explanations to your answer.

Question 2b Present the journal entries to record the purchase of the delivery truck assuming the company paid for all items except estimated monthly petrol usage, monthly salary and monthly maintenance on 1 April 2020. Narrations are not required.

Question 2c

Using the straight-line method, determine the depreciation expense, accumulated depreciation, and net book value of the delivery truck for each of the years ending 31 December 2020, 2021, and 2022.

Question 2d

Using the double declining balance method, determine the depreciation expense, accumulated depreciation, and net book value of the delivery truck for the year ending 31 December 2023.