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Question 4 10 marks Fiona's Italian Market purchased a delivery truck for deliveries for R25, 000 at the beginning of 2017. The truck has an
Question 4 10 marks Fiona's Italian Market purchased a delivery truck for deliveries for R25, 000 at the beginning of 2017. The truck has an estimated life of 5 years, and an estimated residual value of R5, 000. The company plans to use the straight-line depreciation method. At the beginning of 2018, the a 2-year extension of useful life, but no change in residual value. Required 1. What type of cost is the R4, 000? Explain. 2. Calculate the asset's book value at the end of 2017 3. Calculate depreciation expense for 2018. 4. Distinguish between current assets and operating assets
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