Yoshi Company completed the following transactions and events involving its delivery trucks.
| 2012 |
| Jan. |
1 |
Paid $23,515 cash plus $1,635 in sales tax for a new delivery truck estimated to have a five-year life and a $2,150 salvage value. Delivery truck costs are recorded in the Trucks account.
|
| Dec. |
31 |
Recorded annual straight-line depreciation on the truck. |
| 2013 |
| Dec. |
31 |
Due to new information obtained earlier in the year, 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.
|
| 2014 |
| Dec. |
31 |
Recorded annual straight-line depreciation on the truck.
|
| Dec. |
31 |
Sold the truck for $5,400 cash. |
| Required: |
|
Calculate depreciation for year 2013.
|
|
|
Calculate book value and gain (loss) for sale of Truck on December, 2014.
|
|
Prepare journal entries to record these transactions and events.