Truck A is purchased on 1-1-X1 for 15,500. Straight-linedepreciation is used, with a salvage value of 1,500. Estimateduseful life is 5 years. On 12-31-X4 we are going to trade intruck A for truck B with a FMV of $18,000. Trade in allowance(FMV) for Truck A is $3,500. Answer the following:
6. How much is the annual depreciation expense fortruck A using straight line depreciation?____________________
7. What is the journal entry to record depreciation forTruck A for 12-31-X1