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Jerry Guernsey is the sole proprietor of Milkalicious, a milk delivery business. Jerry is a good friend of Pietra and Mr Abderus and also supplies milk to the Avocado Smash Café.
REQUIRED Problem (i) The partner has requested that you draft a letter. to Jerry which explains how Jerry should have recorded the refrigerated van. The partner has asked that you refer to the going concern assumption, definitions for asset and how he should have recorded the refrigerated van based on both the assumption and asset definition.
Problem (ii) In addition, he would like you to explain to Jerry the term 'depreciation' as it is used in accounting and how it should be applied to the refrigerated van. Please include the terms 'historic cost' and 'accounting period' in your answer. the following formatting requirements:
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