QUESTION 4 PART A Chuck, a sole trader, purchased a delivery van on 1 March 2021 for RM11,360 and some new equipment on 1 September 2021 for RM7,000. He expects that the van will have a useful life of 4 years, after which it should have a trade-in value of RM2,000. The scrap value of the equipment after 10 years' use is estimated to be RM1,000. Chuck charges depreciation using the straight line method. Required: What should the depreciation expense be in relation to these 2 items for Chuck's financial year ended 31 December 2021 assuming that: (i) (ii) He charges a full year's depreciation in the year of purchase and none in the year of sale. He charges depreciation monthly.

QUESTION 4 PART A Chuck, a sole trader, purchased a delivery van on 1 March 2021 for RM11,360 and some new equipment on 1 September 2021 for RM7,000. He expects that the van will have a useful life of 4 years, after which it should have a trade-in value of RM2,000. The scrap value of the equipment after 10 years' use is estimated to be RM1,000. Chuck charges depreciation using the straight line method. Required: What should the depreciation expense be in relation to these 2 items for Chuck's financial year ended 31 December 2021 assuming that: (i) (ii) He charges a full year's depreciation in the year of purchase and none in the year of sale. He charges depreciation monthly.

Name: QUESTION 4PART AChuck, a sole trader, purchased a delivery van on 1 M
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Description: QUESTION 4PART AChuck, a sole trader, purchased a delivery van on 1 March 2021 for RM11,360 and some newequipment on 1 September 2021 for RM7,000.He expects that the van will have a useful life of 4 years, after which it should have a trade-in value

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...

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