Irons Delivery Inc. purchased a new delivery truck for $45,000 on January 1, 2022. The truck is expected to have a $3,000 residual value at the end of its five-year useful life. Irons uses the double declining balance method of depreciation. Required: Prepare the journal entry to record depreciation expense for 2022 and 2023.

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
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Problem 8MC: On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was...
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20.

Declining Balance Depreciation

Irons Delivery Inc. purchased a new delivery truck for $45,000 on January 1, 2022. The truck is expected to have a $3,000 residual value at the end of its five-year useful life. Irons uses the double declining balance method of depreciation.

Required:

Prepare the journal entry to record depreciation expense for 2022 and 2023.

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