le #3 BAKER CO. PURCHASED EQUIPMENT FOR $300,000 ON JANUARY 2008. METHOD OF DEPRECIATION IS STRAIGHT LINE. USEFUL LIFE IS 5 YEARS. MAKE ALL THE REQUIRED ENTRIES IN THE FIRST YEAR. ALSO VWHAT IS THE BOOK VALUE OF THE EQUIPMENT AT THE END OF THE THIRD YEAR? AFTER 6 YEARS THE EQUIPMENT IS SENT TO THE JUNK YARD. MAKE THE ENTRY TO TAKE THE EQUIPMENT OFF THE BOOKS.

le #3 BAKER CO. PURCHASED EQUIPMENT FOR $300,000 ON JANUARY 2008. METHOD OF DEPRECIATION IS STRAIGHT LINE. USEFUL LIFE IS 5 YEARS. MAKE ALL THE REQUIRED ENTRIES IN THE FIRST YEAR. ALSO VWHAT IS THE BOOK VALUE OF THE EQUIPMENT AT THE END OF THE THIRD YEAR? AFTER 6 YEARS THE EQUIPMENT IS SENT TO THE JUNK YARD. MAKE THE ENTRY TO TAKE THE EQUIPMENT OFF THE BOOKS.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11PA: Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and...

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Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After three years of recording depreciation, Montezuma determines that the delivery truck will only be useful for another three years and that the salvage value will increase to $4,000. Determine the depreciation expense for the final three years of the assets life, and create the journal entry for year four.
Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.
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