The Tiger Bus Ltd purchased a vehicle for $48,000 on 1 December. It is estimated that annual depreciation on the vehicle will be $4,800. If financial statements are to be prepared on 31 December, the company should make the following adjusting entry: a. Debit Vehicle $4,800; Credit Accumulated depreciation, $4,800. b. Debit Depreciation expense, $400; Credit Accumulated depreciation, $400. c. Debit Depreciation expense, $4,800; Credit Accumulated depreciation, $4,800. d. Debit Vehicle, $400; Credit Accumulated depreciation, $400.

very Vehicles $172,000 Accumulated Depreciation on Delivery Vehicles $34,400 Delivery Vehicles are depreciated at 20% p.a. on cost. In the Statement of Comprehensive Income, Depreciation on Delivery Vehicles is recorded as

The directors of K Limited prepare financial statements to 31 December. They have provided the following information. Balances at 1 January 2019 $ Motor vehicles cost 180000 Motor vehicles provision for depreciation 105000 During the year ended 31 December 2019 1 A new motor vehicle was acquired for $50000. 2 A motor vehicle which had cost $40000 and been depreciated by $17500 was sold for $16500. The company policy is to depreciate motor vehicles at 25% per annum using the reducing balance method. A full year’s depreciation is charged in the year of acquisition and none in the year of disposal. REQUIRED (b) Prepare for the year ended 31 December 2019: (i) motor vehicles provision for depreciation account Motor vehicles provision for depreciation account $ $ [6] 9 © UCLES 2020 9706/22/F/M/20 [Turn over (ii) disposal account

On 1 April 2017 Rosa purchased two motor vehicles costing $50 000 each.On 1 January 2019 she sold one of the motor vehicles for $35 500. The sale proceedswere received by cheque.Depreciation is charged at 20% per annum using the reducing balance method.A full year’s depreciation is charged in the year of purchase and none in the year ofdisposal.(d) Prepare the provision for depreciation – motor vehicles account for the yearended 31 March 2019. Balance the account on that date and bring the balancedown on 1 April 2019.

On 31 December 2018, a new motor vehicle with a useful life of five years and an estimated residual value of $5,000 was purchased by a business at a cost of $25,000. The amount of depreciation expense charged for the six months ended 30 June 2019, using the straight-line method, is:

Early in the fiscal year, The Beanery purchases a delivery vehicle for $40,000. At the end of the year, the vehicle has a fair value of $33,000. The company controller records depreciation expense of $7,000 for the year, the decline in the vehicle’s value. Is the company controller's approach to recording depreciation expense correct?Multiple ChoiceYesNo