Andy bought a van on the 1st August 20X2 for $12,000. He intends to use the van for five years after which he has promised to sell it to his pal Joe for $2,000. He uses the straight line method of depreciation. What will be the value of the van shown in the Statement of Financial Position at 31st July 20X5? 

You bought a van two years ago for 10,000. You depreciated the van over four years on a straight-line basis with a nil residual value. On selling the van today. you made a gain on sale of 4,000. How much cash did you receive from the sale of the van? 

Answer rating: 100% (QA)

1 For Andys van Cost of the van 12000 Depreciation per year Cost of the van Residual va... View the full answer