When journalising the question, i found that depreciation for building is straight line, which is correct. But how is the car depreciated? After the yearly depreciation of ($20000 - $3000)/6, it is multiplied by 11/365. What is 11/365 and how is this value achieved?

QUESTION 1 (30 marks) PART 1: (18 marks) Toto Technology Ltd. started business operations on Sept 1", 2017. The company's president, Terry Yates, envisions the company becoming the leading provider of information technology services in the Greater Toronto Area. Below is a summary of the transactions and events that occurred during the first month of operations at Toto Technology Ltd. September 1 - Terry purchased 100 common shares at $100 each * September 1 -Received a $200,000 bank loan from the Royal Bank of Toronto. Terms of the loan were interest only payments for 2 years, payable on the 1st of every month, with the principal-portion-o n due on January 1, 2019. The stated annual %, compounded monthly. September- Purchased a commercial property (i.e. land and building) for $200,000. rest rate on the loan was $6 The value of the lan 50,000 and the building was valued at $50,000 All capital assets at Toto are depreciated oh a straight-line basis. The building and land have an expected useful life of S0 years, September 2 - Paid in advance a one year insurance policy premium of $3,000; paid in cash September 3-Hired two IT consultants September 4 - Various office supplies purchased for $2,000; paid cash September 6-Performed IT services for a local manufacturer and immediately invoiced the customer for $6,000 September 7-Paid $2,500 for salaries that were incurred to date September 15 -Payment of $6,000 received for September 6 invoice September 17-Performed IT services for 3 customers, receiving $2,500 in cash and immediately invoiced the remaining amount (i.e. $4,500) September 19-Purchased a car on credit for $20,000. The loan was provided by the car dealer at 0% interest. The amount will be paid over 4 years with monthly payments due on the 1 expected salvage value of $3,000 after 6 years month. The car has an expected useful life of 6 years, with an September 24 -Received $5,000 from client in advance of work being performed. September 30-Dividends of $2,000 are paid to Terry Page | 2