2010
Jan.1 Paid $23,515 cash plus $1,785 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.
Dec.31 Recorded annual straight-line depreciation on the truck.
2011
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 $2,850. Recorded annual straight-line depreciation on the truck.
2012
Dec.31 Recorded annual straight-line depreciation on the truck.
Dec.31 Sold the truck for $5,600 cash.
Calculate depreciation for year 2011.
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Total Cost
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Less Accumulated Depreciation from (2010)
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Book Value
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Less revised salvage value
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Remaining cost to be depreciated
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Years of life remaining
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Total depreciation for 2015
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Calculate book value and gain (loss) for sale of Truck on December, 2012.
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Depreciation expense (for 2010)
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Depreciation expense (for 2011)
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Depreciation expense (for 2012)
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Accumulated Depreciation for 12/31/2012
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Book value of truck at 12/31/2012
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Total Cost
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Accumualted Depreciation
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Book value of 12/31/2012
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Gain/Loss on sale of truck
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Prepare journal entries to record these transactions and events.