Declining Balance Depreciation Irons Delivery Inc. purchased a new delivery truck for $40,000 on January 1, 2019. The truck is expected to have a $2,000 residual value at the end of its 5-year useful life. Irons uses the double-declining-balance method of depreciation. Required: Prepare the journal entry to record depreciation expense for 2019 and 2020. 2019 Dec. 31 (Record double-declining-balance depreciation expense) 2020 Dec. 31 (Record double-declining-balance depreciation expense)
Declining Balance Depreciation Irons Delivery Inc. purchased a new delivery truck for $40,000 on January 1, 2019. The truck is expected to have a $2,000 residual value at the end of its 5-year useful life. Irons uses the double-declining-balance method of depreciation. Required: Prepare the journal entry to record depreciation expense for 2019 and 2020. 2019 Dec. 31 (Record double-declining-balance depreciation expense) 2020 Dec. 31 (Record double-declining-balance depreciation expense)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Declining Balance
Irons Delivery Inc. purchased a new delivery truck for $40,000 on January 1, 2019. The truck is expected to have a $2,000 residual value at the end of its 5-year useful life. Irons uses the double-declining-balance method of depreciation.
Required:
Prepare the
| 2019 Dec. 31 | |||
| (Record double-declining-balance depreciation expense) | |||
| 2020 Dec. 31 | |||
| (Record double-declining-balance depreciation expense) |
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