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Dodgy Dave purchased a new truck for his gardening and landscaping business on 1 January 2017 at a cost of $63,800 GST Inclusive. The estimated residual value is $8,000. The truck has a useful life of 5 years and the business expects to use it for 160,000 Kilometers. It was used for 22,000 Kilometers in year 1; 30,400 Kilometers in year 2; 28,000 Kilometers in year 3; 34,500 Kilometers in year 4; 32,600 Kilometers in year 5. The end of financial year is 30 June.
Problem 1: Calculate depreciation using the straight-line method for 2017 and 2018
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