Question
A company, AA Corp., purchased a delivery truck with cash on January 1, 2023 for $50,000. The truck is expected to have a useful life
A company, AA Corp., purchased a delivery truck with cash on January 1, 2023 for $50,000. The truck is expected to have a useful life of 5 years and a residual value of $5,000. XYZ Corp. uses the straight-line depreciation method for all its fixed assets. The company pays for a $3,000 for a flatbed that is put on the truck and fills the tank with $120 of diesel fuel before it is put in service. a) Record the acquisition of the truck on January 1, 2023, including any necessary journal entries. b) Create a depreciation schedule for the truck, showing the depreciation expense for each year and the accumulated depreciation. c) Record the depreciation expense with a journal entry for the year at December 31 2023, and 2024. d) What is accumulated deprecation at 12/31/2024?
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