Holly purchased a new motor vehicle for her business for $24 000. Holly depreciates motor vehicles at 25 per cent per annum using the reducing-balance method of depreciation.

a. Calculate the annual charge for depreciation of the motor vehicle for each of the first three years of ownership.

b. Complete the motor vehicle at cost account to record the purchase of the motor vehicle. Complete the provision for depreciation for the motor vehicle account to show the annual charge for depreciation.