Warwreck Car Wrecking Company has been in operation for three years using two wrecking trucks. On 31 August 2016, the end of the third accounting period, the new accountant noticed that the company had recorded depreciation on its wrecking trucks in the following ways: First year Second year Straight-line method Reducing balance method on the net book value at the end of Year! Based on the above information: (a) (i) Name the TWO financial statements which were affected by the error described above. (2 marks) (ii) Name the accounting principle that was NOT being followed by the company (1 mark) To correct the error, the new accountant presents the following information RATE ASSET COST YEARS OF | DEPRECTATION ISEFUL LIFE METHOD Reducing balang Vehicles S1601000 (b) Using all the information provided calculate the balance which had been bro down tror in the Provision for Deretation Account Nut September Name of Method Depreciation Expense Formula and answer e 15 marks) GOUN TO THE NEXT PAGE Warwreck's owner has agreed that the reducing balance method should be used for the calculation of depreciation on the wrecking trucks. (ii) Using the information on page 17 and the form below, calculate the amount that should appear in the Provision for Depreciation Account as at 31 August 2016. Depreciation Expense on Wrecking Trucks using Reducing Balance Method Working Column Depreciation Expense - Year 1 Working Column Depreciation Expense -Year 2 Working Column Depreciation Expense Year (7 marks