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Sheily's statement of financial position as at 31 May 2021 reported her motor vehicles as follows: During the year to 31 May 2022 , Sheily

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Sheily's statement of financial position as at 31 May 2021 reported her motor vehicles as follows: During the year to 31 May 2022 , Sheily scrapped a van and part exchanged an old car for a new car. The van had been bought in January 2019 at a cost of RM9,600. The car had been bought in September 2019 at a cost of RM14,400. The part exchange value of the old car was RM8,400, and the total cost of the new car was RM17,610. Sheily provides a full year's depreciation in the year of purchase of an asset, and no depreciation is charged in the year of disposal. She depreciates motor vehicles at a rate of 25% per annum on a reducing balance basis. Required: Calculate: a. the profit or loss on disposal of each of the vehicles. (8 marks) b. the depreciation charge for the year to 31 May 2022 for motor vehicles. ( 3 marks) c. the total amount to be reported in the profit and loss account for the year to 31 May 2022 in respect of motor vehicles. (4 marks)

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