UFRICA
United States International University-Africa
BUS 5010A: Survey of Accounting
Individual Assignment Two: Spring, 2024
Depreciation
Instructions:
1. Answer all questions and clearly show all your workings (additional \( \mathbf{1 0} \) marks will be awarded for the correct workings).
2. Do NOT use a pencil.
3. To be submitted on \( 16^{\text {th }} \) March, 2024 at \( 10: 40 \) a.m. during normal class session. Late submissions will lead to a penalty of 10 marks.
Question One
Msamaria Mwema Transport Services (MMTS) was incorporated on 2 January, 2019 and has its financial year ending on 31 December. The company's motor vehicle records are as follows:
Year 2019
- On 1 March, MMTS bought motor vehicle KZ 414A for KES 4,500,000.
- On 1 May, MMTS bought motor vehicle KB 410 C for KES 6,000,000.
- On 1 July, MMTS bought motor vehicle KD 310B for KES 15,000,000.
Year 2020
- On 1 January, MMTS bought motor vehicle KL 330A for KES 3,600,000.
- On 30 June, MMTS bought motor vehicle KE 111B for KES 12,000,000.
- On 1 August, MMTS bought motor vehicle KG 200A for KES 18,000,000.
Year 2022
- Traded-in KB 410 C with KH 275D costing KES 7,500,000. The dealer requested MMTS to pay an additional KES 3,000,000. The trade-in transaction was completed on 30 June.
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