Question: can I get help with this questions Question 2 - Pip's Plumbing (8 marks) Pip Pipes owns and operates Pip's Plumbing, a small business that
Question 2 - Pip's Plumbing (8 marks) Pip Pipes owns and operates Pip's Plumbing, a small business that prepares reports on an annual basis on 30 June. On 30 June 2021 Pip traded-in a Van that originally cost $42 000 [plus GST]. As at 30 June 2021 the carrying value of the Van was $8 900. The Van Man agreed to a trade-in allowance of $8 500 on the cash purchase of a new Van with a selling price of $56 100 [including GST). a. Explain what the carrying value of $8 900 reported on the Balance Sheet of Pip's Plumbing represents. 2 marks b. Complete the Disposal of Van account in the General Ledger as at 30 June 2021. 4 marks c. With reference to your answer in part b., explain why a Profit or Loss on the trade-in of the Van can occur. 2 marks
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