# accounting2

On 1st of January 2018 Blink Ld. purchased a new truck to be used for the delivery of the merchandises produced by the company.
The price paid was \$175,000. The residual value of the truck was estimated to \$5,000 and the useful life to 9 years.
On 31st of December 2020 the company sold the truck for \$107,000.
On 31st of December, Blink, Ltd obtained a 18 months loan from the bank for \$200,000. Interest rate is 6%. The company will face monthly installment payments of \$2,000  as from January 1st 2020.

Calculate the gain or loss obtained for the sale of the truck considering that the company used the straight-line depreciation method. Explain your calculation and the steps followed. 35 points  (10 for accumulated depreciation, 10 for net book value, 10 for amount of gain or loss, 5 for the explanations)
Calculate the gain or loss obtained for the sale of the truck considering that the company used the double declining balance method for depreciation purposes. Explain your calculation and the steps followed.  35 points (10 for accumulated depreciation, 10 for net book value, 10 for amount of gain or loss, 5 for the explanations)
Explain the differences obtained between answer to questions 1 and 2. 10 points.
Calculate the remaining unpaid balance of the loan at 28th of February 2021. Explain your calculation. 20 points

Don't use plagiarized sources. Get Your Custom Essay on
accounting2
Just from \$10/Page

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.