Question $3(13$ marks$)$

TRD Ltd$.$ purchased an off$-$road truck on May $1,2021$ at a cost of $$38,000$ with an estimated useful life of

$150,000kms$ or $5$ years, and a residual value of $$8,000.$ The truck was driven $20,000kms$ for the year

ended December $31,2021$; $30,000$ kms for the year ended December $31,2022$; and $35,000$ kms for the

year ended December $31,2023.$

On April $1,2021,$ TRD Ltd$.$ purchased a machine at a cost of $$72,000$ with an estimated useful life of $5$ years

and a residual value of $$8,000.$ The machine is depreciated using the double$-$declining balance method.

The machine was sold on June $1,2023$ for $$30,000.$

TRD Ltd$.$ records adjusting entries annually and has a December $31$ year$-$end.

Required:

a$)$ Prepare the depreciation schedules for both assets for the years ended December $31,2021,$

December $31,2022,$ and December $31,2023.$ Select the best depreciation method for the truck.

$($Only show this one method $-$ do not prepare depreciation schedules for the truck using other

depreciation methods$).$

Truck $(4$ marks$)$

Machine $(4$ marks$)$

b$)$ Present the line items that would appear on the Statement of Financial Position at December $31,$

$2022$ that relate to these two assets. marks$)$

c$)$ What was the gain$/$loss realized on the sale of the machine on June $1,2023?(2$ marks$)$