ear 1 n. 1 Paid $22,015 cash plus $1,635 in sales tax for a new delivery truck estimated to have a five- year life and a $2,300 salvage value. Delivery truck costs are recorded in the Trucks account. c. 31 Recorded annual straight-line depreciation on the truck. ear 2 c. 31 The truck's estimated useful life was changed from five to four years, and the estimated salvage value was increased to $2,700. Recorded annual straight-line depreciation on the truck. ear 3 c. 31 Recorded annual straight-line depreciation on the truck. c. 31 Sold the truck for $5,500 cash. equired: a. Calculate depreciation for Year 2. o. Calculate book value and gain (loss) for sale of Truck on December 31, Year 3. c. Prepare journal entries to record these transactions and events. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 1C
ear 1 n. 1 Paid $22,015 cash plus $1,635 in sales tax for a new delivery truck estimated to have a five- year life and a $2,300 salvage value. Delivery truck costs are recorded in the Trucks account. c. 31 Recorded annual straight-line depreciation on the truck. ear 2 c. 31 The truck's estimated useful life was changed from five to four years, and the estimated salvage value was increased to $2,700. Recorded annual straight-line depreciation on the truck. ear 3 c. 31 Recorded annual straight-line depreciation on the truck. c. 31 Sold the truck for $5,500 cash. equired: a. Calculate depreciation for Year 2. o. Calculate book value and gain (loss) for sale of Truck on December 31, Year 3. c. Prepare journal entries to record these transactions and events. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 1C
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 13PB: Montezuma Inc. purchases a delivery truck for $20,000. The truck has a salvage value of $8,000 and...
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