Question: 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

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?

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