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The following balances appeared in the books of Santiago Traders on 1 March 2020 Land and Buildings Vehicles Machinery Accumulated Depreciation on Vehicles Accumulated Depreciation
The following balances appeared in the books of Santiago Traders on 1 March 2020 Land and Buildings Vehicles Machinery Accumulated Depreciation on Vehicles Accumulated Depreciation on Machinery 900 000 250 000 200 000 7 Additional information: A new building was purchased for cash on the 1" September 2020 for R1 000 000 The vehicles balance at 1 March 2020 consists of two vehicles. Vehicle A with a cost price of R120 000 was sold on the 31 October 2020 on credit to Miss Smith for R60 000. The vehicle was purchased on the 31 May 2018 Vehicle B was purchased on the 1 March 2019. Purchased a new delivery vehicle (Vehicle for R345 000 on credit from NEN Motors on 1 December 2020 All machinery was purchased on the 30 April 2017 The depreciation policy on non-current assets are as follows: Vehicles: 20% on cost using the straight-line method and no residual value Machinery: 106 per annum using the diminishing balance method and no residual value IGNORE VAT Santiago Traders has a 28 February year end Q.1.2 If Santiago Traders wants to sell Vehicle Con 31 May 2021 and make a profit on (4) sale of the vehicle, how much should Santiago Traders sell the vehicle for? Provide calculations to support your
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