Swann Company sold a delivery truck on April 1, Year 5. Swann had acquired the truck on January 1, Year 1, for $44,000. At acquisition, Swann had estimated that the truck would have an estimated life of 5 years and a residual value of $3,000. Swann uses the straight-line method of depreciation. At December 31, Year 4, the truck had a book value of $11,200. 1a. Prepare the necessary journal entries on April 1, Year 5 to record:1. Depreciation expense of the delivery truck for Year 52. The sale of the truck, assuming it sold for $10,600
Swann Company sold a delivery truck on April 1, Year 5. Swann had acquired the truck on January 1, Year 1, for $44,000. At acquisition, Swann had estimated that the truck would have an estimated life of 5 years and a residual value of $3,000. Swann uses the straight-line method of depreciation. At December 31, Year 4, the truck had a book value of $11,200. 1a. Prepare the necessary journal entries on April 1, Year 5 to record:1. Depreciation expense of the delivery truck for Year 52. The sale of the truck, assuming it sold for $10,600
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 1RE: Susquehanna Company purchased an asset at the beginning of the current year for 250,000. The...
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Swann Company sold a delivery truck on April 1, Year 5. Swann had acquired the truck on January 1, Year 1, for $44,000. At acquisition, Swann had estimated that the truck would have an estimated life of 5 years and a residual value of $3,000. Swann uses the straight-line method of
1. Depreciation expense of the delivery truck for Year 5
2. The sale of the truck, assuming it sold for $10,600
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