Sorvina Traders had the following balances (amongst others) in their books on 1 September 20.7:

Vehicles	R700 000
Accumulated depreciation: vehicles	R140 000

During the year ended 31 August 20.8, the following transactions took place pertaining to vehicles:

• On 28 February 20.8, a new vehicle was bought for R231 000 cash.
• On 1 June 20.8, an old vehicle, which had been bought on 1 December 20.5 for R280 000, was sold on credit for R157 500.

Sorvina Traders depreciates all their vehicles at a rate of 20% per annum according to the reducing balance method. Ignore VAT.

QUESTION ONE:

The accumulated depreciation on the vehicle sold as at 1/9/20.7 is:

a. R89 000

b. R42 000

c. R47 600

d. R89 600

QUESTION TWO:

The accumulated depreciation on the vehicle sold as at 1/9/20.7 is:

a. R110 000

b. R28 560

c. R118 160

d. R120 160

QUESTION THREE:

The depreciation on the new vehicle for the financial year ended 31 August 20.8 is

a. R20 100

b. R23 100

c. R21 100

d. R24 100

QUESTION FOUR:

The total depreciation on the old remaining vehicles for the financial year ended 31 August 20.8 is:

a. R73 920

b. R73 900

c. R73 890

d. R73 880