Tali Enterprises Limited purchased office furniture, equipment & a delivery van on January $1,2024,$ from a company that was going out of business for $$125,000.$ An independent appraisal of the items valued the office furniture at $$22,500,$ the equipment at $$67,500$ & the delivery van at $$60,000.$ Management has prepared the following estimates regarding useful life & residual value for the assets they acquired:

Shannon School of Business

Acct$12030$ Assignment $2$

Office furniture Equipment Delivery van

Residual value $$0$ $$7,500$ $$10,000$

Useful life $5$ years $10$ years $200,000$km

The company plans to use the straight$-$line method for the office furniture, double diminishing balance method for the equipment & the units of production method for the delivery van. The company has a December $31$ year end and only calculates depreciation at the end of the year.

Required:

$1.$ Calculate the cost of the office furniture, equipment & delivery van.

$2.$ Calculate the depreciation for Tali Enterprises Limited for $2024,2025$ & $2026$ for the

office furniture, equipment & delivery van. The company estimates it will drive the van

$25,000$km in $2024$; $30,000$km in $2025$ & $20,000$ km in $2026.$

$3.$ What is the carrying value of the office furniture, equipment & delivery van at the end of

$2026.$

$4.$ Assume the company sells the equipment for $$25,000$ on July $1,2027.$ Prepare the

journal entry to record the sale of the equipment.