Question

Question 1 (8 marks) On 1 July 2011 Sprintfast Couriers, which has a year-end of 30 June, purchased a delivery truck for use in its courier operations at a cost of $65 000. At the end of the truck's useful life it is expected to have a residual value of S5000. During its six-year useful life, Sprintfast Couriers Limited expected the truck to be driven 246 000 kilometres. Required Calculate the annual depreciation charge for each of the six years of the truck's life using the following methods: (a) the straight-line method (b) the sum-of-digits method (c) the declining-balance method (d) the units-of-production method using kilometres as the basis of use and assuming the following usage 63%) 3gKè CPUR ear 2012 2013 2014 2015 2016 2017 28 000 34 000 42 000 55 000 68 000 19 000 246 000 O Type here to search 39C CPU温度 1:10AM 29/01/2019

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Answer 1

d) Units of production Method Cost Of Assets $65000 Residual value $5000 Total Numbers of Kilometers to be performed 246000 Kilometers. Formula: Depreciation (cost of asset Residual Value *Use of Truck performed (in Kilometers)/Total Number of Kilometers Year Depreciation Base No. of Kilometers operates Depreciation (P.a) 1 60000(65000-5000) 28000 34000 42000 55000 68000 19000 246000 6829.27 8292.68 10243.90 13414.63 16585.37 4634.15 4 60000 Total Amounts has been rounded it off to Nearest Two Digits. So, Depreciation will be charged to asset at 6829.27,8292.68,10243.9,13414.63,16585.37 and 4634.15 to the years 1 to 6 respectively