Case 1: Depreciation and advance payments
Carpenter Karl Dach needs a new van. The van will be delivered on 18 January 20X1, payable within 1 week at a 1%discount or within 4 weeks net. Karl Dach does not use the discount, so the van costs €28,800 net. For transfer and registration, the dealer charges €400 net. The useful life is estimated at 5 years. The reselling value after 5 years for the used vehicle is estimated roughly at €3,000.