Skysong, Inc. purchased a delivery truck for $32,400 on January 1, 2020. The truck has an expected salvage value of $2,400, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,700 in 2020 and 12,900 in 2021. Assume that Skysong uses the straight-line method. Prepare the journal entry to record 2020 depreciation.

Skysong, Inc. purchased a delivery truck for $32,400 on January 1, 2020. The truck has an expected salvage value of $2,400, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,700 in 2020 and 12,900 in 2021. Assume that Skysong uses the straight-line method. Prepare the journal entry to record 2020 depreciation.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 3EA: Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is...

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