QUESTION 3 Shareholders' funds that were in existence in an organisation before an entity acquired an ownership interest in that organisation are called: O pre-acquisition shareholders' funds post-acquisition shareholders' funds O follow-up shareholders' funds O None of the given answers are correct. QUESTION 4 Red Enterprises purchased a vehicle for $35 000. A further $5 000 was spent to prepare it for use. The useful life of the vehicle is expected to be 15 years, but Red Enterprises expects to replace it with a better model in seven years' time. The salvage value is estimated to be $6 500 after 15 years and 515 000 at the end of seven years. What is the depreciation for the first two years, using the declining-balance method of depreciation (rounded to the nearest dollar)? Year 1: $5 230. Year 2: 54 546 O Year 1: $4 564 Year 2: 54043 Year 1: $3 990. Year 2: 53 535 O Year 1: $3 269, Year 2: 52 841