Pupkewitz Motors bought a delivery vehicle on 1 June 2018 and paid these expenses:

N__________________________________________________________$

Cost price……………………………………………….…..............232 000

Sign writing…………………………………………………................2 900

Tinting of windscreen ad windows…………………………...4 860

Seat covers…………………………………………………................1 680

Licensing fee…………………………………………………................320

Number plates…………………………………………………............240

You are required to:

Calculate the cost of the vehicle.

Mention two accounting principles that guides the calculation and reporting of depreciation.

Write down the formula to determine the rate of depreciation.