Montezuma Inc. purchases a delivery truck for $12,600. The truck has a salvage value of $3,000 and is expected to be driven for 8 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 $6,000. A. Determine the Depreciation Expense for the final three years of the asset's life. Round final answer to nearest whole dollar. per year Feedback V Check My Work When revising deprecation schedules, the book value is used as the adjusting base to apply the new changes to when determine the revised yearly depreciation amount. B. Prepare the journal entry for year four. If an amount box does not require an entry, leave it blank. Round final answer to nearest whole dollar. Depreciation Expense v 88 Accumulated Depreciation-Delivery Truck v

Montezuma Inc. purchases a delivery truck for $12,600. The truck has a salvage value of $3,000 and is expected to be driven for 8 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 $6,000. A. Determine the Depreciation Expense for the final three years of the asset's life. Round final answer to nearest whole dollar. per year Feedback V Check My Work When revising deprecation schedules, the book value is used as the adjusting base to apply the new changes to when determine the revised yearly depreciation amount. B. Prepare the journal entry for year four. If an amount box does not require an entry, leave it blank. Round final answer to nearest whole dollar. Depreciation Expense v 88 Accumulated Depreciation-Delivery Truck v

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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