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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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