Golden Co Ltd Has Donated a Vehicle to Bushman Enterprises $\text { Golden Co Ltd}$

Multiple Choice

Golden Co Ltd has donated a vehicle to Bushman Enterprises as a result of publicity about the plight of Bushman Enterprises after bushfires destroyed most of its fleet of vehicles.The vehicle had cost Golden Co £25 000 and has accumulated depreciation of £10 000.Its market value is £20 000.How should the asset transfer be recorded in both companies' books?

A) $\text { Golden Co Ltd}$
$\begin{array}{|l|l|r|r|}\hline \mathrm{Dr} & \text { Donation expense } & 15000 & \\\hline \mathrm{Dr} & \text { Accumulated depreciation } & 10000 & \\\hline \mathrm{Cr} & \text { Vehicle } & & 25000 \\\hline\end{array}$

$\text { Bushman Enterprises }$
$\begin{array}{|l|l|l|l|}\hline \mathrm{Dr} & \text { Vehicle } & 20000 & \\\hline \mathrm{Cr} & \text { Donation revenue } & & 20000 \\\hline\end{array}$


B) $\text { Golden Co Ltd }$
$\begin{array}{|l|l|r|r|}\hline \mathrm{Dr} & \text { Donation expense } & 20000 & \\\hline \mathrm{Dr} & \text { Accumulated depreciation } & 10000 & \\\hline \mathrm{Cr} & \text { Gain on disposal of vehicle } & & 5000 \\\hline \mathrm{Cr} & \text { Vehicle } & & 25000 \\\hline\end{array}$

$\text { Bushman Enterprises }$
$\begin{array}{|l|l|r|l|}\hline \mathrm{Dr} & \text { Vehicle } & 20000 & \\\hline \mathrm{Cr} & \text { Donation revenue } & & 20000 \\\hline\end{array}$
C) $\text { Golden Co Ltd }$
$\begin{array}{|r|l|r|r|}\hline \mathrm{Dr} & \text { Goodwill } & 20000 & \\\hline \mathrm{Dr} & \text { Accumulated depreciation } & 10000 & \\\hline \mathrm{Cr} & \text { Gain on disposal of vehicle } & & 5000 \\\hline \mathrm{Cr} & \text { Vehicle } & & 25000 \\\hline\end{array}$

$\text { Bushman Enterprises }$
$\begin{array}{|l|l|l|l|}\hline \text { Dr } & \text { Vehicle } & 20000 & \\\hline \mathrm{Cr} & \text { Equity } & & 20000 \\\hline\end{array}$
D) $\text { Golden Co Ltd }$
$\begin{array}{|l|l|r|l|}\hline \mathrm{Dr} & \text { Goodwill } & 15000 & \\\hline \mathrm{Dr} & \text { Accumulated depreciation } & 10000 & \\\hline \mathrm{Cr} & \text { Vehicle } & & 25000 \\\hline\end{array}$

$\text { Bushman Enterprises }$
$\begin{array}{|l|l|r|l|}\hline \mathrm{Dr} & \text { Vehicle } & 15000 & \\\hline \mathrm{Cr} & \text { Donation revenue } & & 15000 \\\hline\end{array}$