QUESTION 8 On 30 June 2019, ADS Luxury Ltd decides to sell its delivery car and replace it by purchasing a new delivery van which would offer greater capacity to move products. The old delivery car had originally been recorded at a value of $22,000, had an estimated residual value of $6,500 and had a carrying value of $9,000 as at 30 June 2019. ADS Luxury Ltd sold the delivery car for $11,500 in cash. On 1 July 2019, ADS Luxury Ltd acquired a large delivery van with a list price of $105,000 but was able to negotiate a 5% discount for cash payment. ADS also paid cash of $7,800 for mandatory third-party insurance and $5,900 for compulsory stamp duty. Management also decided to exercise their discretion by paying $750 to customise the van's number plate as "LUX-100". Though this customisation was not required, management thought this would be a fun addition to this asset. The delivery van has a $15,000 residual value and ATO rules state that it must be depreciated using the Reducing Balance method (at 2.0 x straight-line rate), over its 9-year useful life. Required: a) Journalise the sale of the old delivery car on 30 June 2019 (2 marks) b) Journalise all transactions relating to the delivery van purchase on 1 July 2019 (2 marks) c) Journalise the depreciation of the new delivery truck for the financial year ending 31 December 2019 (2 marks) Note: No explanations are required. Please round to the nearest dollar and distinguish between your responses to part a), b) and c) Relevant Formula