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  3. question 2 (20 marks) a) a firm bought a lorry for

QUESTION 2 (20 MARKS) a) A firm bought a lorry for RM50,000. The lorry is...

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Accounting

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QUESTION 2 (20 MARKS) a) A firm bought a lorry for RM50,000. The lorry is expected to last four years and its salvage value at the end of four years is RM30,000. Using the straight line method, find the book value of the lorry at the end of the second year. (4 marks) b) A machine costing RM50,000 has a life expectancy of five years and a salvage value of RM10,000. Using the sum-of-year digits method, find the book value at the end of two (6 marks) years. c) A vehicle costing RM20,000 has a life expectancy of three years and salvage value of RM2,000. Using the declining balance method, compute the annual rate of depreciation. (3 marks) Construct a depreciation schedule using the straight line method for a new car that costs RM60,000 and has salvage value of RM10,000 at the end of five years. (7 marks) ***END OF QUESTIONS***

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