Question 1 has three sections for it

Question 1 A) calculate the depreciation using the straight line method for 2017 & 2018

Question 1 B) prepare a depreciation schedule for the first 3 years ending 30 june using the diminishing balance depreciation method. Assume the depreciation rate to be double the straight line rate

Question 1 C) calculate depreciation using units of productions method based on Kilometers for 2017 &2018

QUESTION 1 [20 Marks) Dodgy Dave purchased a new truck for his gardening and landscaping business on 1 January 2017 at a cost of $63,800 GST Inclusive. The estimated residual value is $8,000. The truck has a useful life of 5 years and the business expects to use it for 180,000 Kilometers. It was used for 22,000 Kilometers in year 1: 30,400 Kilometers in year 2: 28,000 Kilometers in year 3: 34,500 Kilometers in year 4: 32,600 Kilometers in year 5. The end of financial year is 30 June (a) Calculate depreciation using the straight-line method for 2017 and 2018 [4 marks] (b) Prepare a depreciation schedule for the first 3 years ending 30 June using the diminishing balance depreciation method. Assume the depreciation rate to be double the straight-line rate. [12 marks] Workings: 1- Date Beginning Carrying Amount Depreciation Accumulated Depreciation Closing Carrying Amount 30 June 2017 30 June 2018 30 June 2019 (c) Calculate depreciation using the units-of-production method (based on kilometers) for 2017 and 2018 [4 marks) Workings: 2017 Depreciation 2018 Depreciation