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A truck was acquired on July 1, 2020, at a cost of $162,000. The truck had a six-year useful life and an estimated salvage value

A truck was acquired on July 1, 2020, at a cost of $162,000.

The truck had a six-year useful life and an estimated salvage value of $18,000.

The straight-line method of depreciation was used.

On January 1, 2023, the useful life of the truck was extended for additional two years beyond that originally estimated (salvage value is estimated at $3,000).

In computing depreciation for annual adjustment purposes, expense is calculated for each month the asset is owned. The fiscal year end is December 31.

Prepare the appropriate entries for December 31, 2023.

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