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Question 3 Maxim Sdn Bhd bought a lorry for business at cost of RM17,000. The lorry is expected to last for 5 years and then
Question 3 Maxim Sdn Bhd bought a lorry for business at cost of RM17,000. The lorry is expected to last for 5 years and then be sold for scrap for RM2,000. The annual depreciation charged to profit and loss account of Maxim Sdn Bhd is as following: Year 1 2 3 4 5 RM 5,950 3,868 2,514 1,634 1,034 (b) Explain the suitability of the depreciation method. [5 marks)
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