Dakota Company completed the following transactions and events involving its delivery trucks. 2010 Jan. 1 Paid $25,015

Question:

Dakota Company completed the following transactions and events involving its delivery trucks.
2010
Jan. 1 Paid $25,015 cash plus $1,485 in sales tax for a new delivery truck estimated to have a five-year life and a $2,000 . Delivery truck costs are recorded in the Trucks account.
Dec. 31 Recorded annual straight-line depreciation on the truck.
2011
Dec. 31 Due to new information obtained earlier in the year, the truck’s estimated useful life was changed from five to four years, and the estimated was increased to $2,700. Recorded annual straight-line depreciation on the truck.
2012
Dec. 31 Recorded annual straight-line depreciation on the truck.
Dec. 31 sold the truck for $5,600 cash.
Required
Prepare journal entries to record these transactions and events.
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...