Bison Transport is a large trucking company that operates from Ontario to British Columbia in Canada and
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Bison Transport trades in its trucks often to keep driver morale high and maximize fuel efficiency. Assume that in 2014, the company acquired a tractor-trailer rig costing $280,000 and expected it to remain in service for five years or 1,000,000 km. Estimated residual value would be $40,000. During 2014, the truck was driven 130,000 km; during 2015, 180,000 km; and during 2016, 180,000 km. After 90,000 km in 2017, the company wishes to trade in the tractor-trailer rig for a new rig. Determine the carrying amount of the rig and prepare the journal entry to derecognize the rig?
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Related Book For
Financial Accounting
ISBN: 978-0134564142
6th Canadian edition
Authors: Walter Jr. Harrison, Charles T. Horngren, C. William Thomas, Greg Berberich, Catherine Seguin
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