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Question - On 01 July 2012, ABC Ltd purchased a truck for a total cost of $132000 cash including GST. In addition, delivery charges of $2750 including GST and registration and insurance of $4500 including GST were paid on same day. The useful life of the truck was estimated to be five years, with a salvage value of $2000 excluding GST.
Required -
1. Calculate the annual depreciation, using the straight-line method?
2. Calculate annual depreciation at 30% Reducing Balance Method.
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