SP 2020-21 >> ACT 112-2 (Lec) >> Principles of Accounting 1 Question Not yet answered 1 Marked out of 8.00 Flag question Blank and Blank Limited (B&B), a UAE company, agreed on November 1, 2024 to purchase a new van from Waste and Waste Limited (W&W), a company based in Portugal. B&B required the van to provide deliveries of a new product produced by B&B to clients in the UAE. Qui 1 6 The listed sale price of the van was $110,000. W&W offered B&B a 20% discount on the listed sale price if B&B paid in cash which B&B did on December 1, 2024. The total transportation cost to ship the van from Portugal to the UAE was $20,000 with W&W paying 30%. B&B also paid $30,000 in legal, road registration, and importation fees. The van went into full operations with B&B on January 1, 2025. B&B estimated that the van had a useful life of 6 years. At the end of 6 years B&B estimated the van would have a salvage value of $15,000. B&B also estimated that the van had a total useful operational life of 150,000 kilometres. The management of B&B estimated the van would operate for 30,000 kilometres in 2025, 40,000 kilometres in 2026, 35,000 kilometres in 2027, and 15,000 kilometres each year after that. Fin The financial year for B&B is from January 1 to December 31. Required: 1. Calculate the historical cost (also known as the cost price) of the new van purchased by B&B. [2 Marks] 2. Assume B&B used the straight-line method for calculating annual depreciation for the new van. What is the total annual depreciation aynence P&R would record for the van in 20252 12 Markel hp