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A motor vehicle which cost $12,000 was bought on credit from Trucks Ltd on 1 January 20X9. Financial statements are prepared annually to 31 December and depreciation of vehicles is provided at 25% per annum under the reducing balance method.
Required:
Problem 1: Prepare the motor vehicle account and the accumulated provision for depreciation on motor vehicles account for the first two years of the motor vehicle's working life.
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