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Your company purchases the following vehicles at the dates and values shown: (a) Your company issues income statements for each calendar year (i.e., assume your
Your company purchases the following vehicles at the dates and values shown: (a) Your company issues income statements for each calendar year (i.e., assume your year-end is December 31 st and you had no prior assets in this class). What is the total depreciation charge (i.e., dt) associated with these vehicles on the income staternent in 2018 if you use declining balance depreciation with D=20% ? Note that you expect each to have a useful life of five years and a salvage value of $7500. Depreciation charge of Truck A in 2018$ Depreciation charge of Truck B in 2018=\$ Depreciation charge of Truck C in 2018 = Depreciation charge of Truck D in 2018=5 Total depreciation charge in 2018= $ (b) If you sold Truck D for $25000 just before you issue the income statement for 2018 (i.e., it underwent its full scheduled depreciation in that year), how much would your net profit increase for 2018 if you used declining balance depreciation with D=20% ? You would have a of 4 in so your net income would by this amount in that year
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