Apex Fithess Club uses straight-line depreciation for a machine costing $19,550, with an estimated four-year life and a $2,300 salvage value. At the beginning of the third year, Apex determines that the machine has three more years of remaining useful life, after which it will have an estimated $1,850 salvage value. 1. Compute the machine's book value at the end of its second year. 2. Compute the amount of depreciation for each of the final three years given the revised estimates. Complete this question by entering your answers in the tabs below. Compute the machines book value at the end of its second year. (Do not round intermediate calculations. Round your final. answers to the nearest whole dollac.) Apex Fitness Club uses straight-line depreciation for a machine costing $19,550, with an estimated four-year life and a $2,300 salvage value. At the beginning of the third year, Apex determines that the machine has three more years of remaining useful life, after which it will have an estimated $1,850 salvage value. 1. Compute the machine's book value at the end of its second year. 2. Compute the amount of depreciation for each of the final three years given the revised estimates. Complete this question by entering your answers in the tabs below. Compute the amount of depreciation for each of the final three years given the revised estimates. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) Year 1 January 1 Paid $22,015 cash plus $1,635 in sales tax for a nen delivery truck estinated to have a five-year 1 fle and a $2,300 salvage value. Delivery truck costs are recorded in the Trucks account. Decenber 31 Recorded annual straight-1ine depreciation on the truck. Year 2 December 31 The truck's estimated usefu1 life was changed from five to four years, and the estimated salvage value was increased to $2,850. Recorded annual straight-line depreciation on the truck. Year 3 Decenber 31 Recorded annual straight-1ine depreciation on the truck. December 31 sold the truck for 55,300 cainh. Required: 1-a. Calculate depreciation for Year 2. 1-b. Calculate book value and gain (loss) for sale of Truck on December 31, Year 3. 1.c. Prepare journal entries to record these transactions and events. Complete this question by entering your answers in the tabs below. Calculate depreciation for Year 2. January I paid s24, $1? casn pius $1,03 in naies tax for a new delivery truck estimacea to nave a tive-year lire and a $2,300 salvage value. Delivery truck costs are recorded in the Trucki account. December 31-Recorded annual straight-line depreciation on the truck. Year 2 December 31 The truck's estimated unetul life was changed from five to four years, and the estinated salvage value was increased to $2,850. Recorded annual straight-11ne depreciation on the truek. Year 3 Decenber 31 Fecorded annual straight-1ine depreciation on the truck. December 31 Sold the truck for $5,300 cash. Required: 1-a. Calculate depreciation for Year 2. 1-b. Calculate book value and gain (loss) for sale of Truck on December 31, Year 3. 1-c. Prepare journal entries to record these transactions and events. Complete this question by entering your answers in the tabs below. Calculate book value and gain (los5) for sale of Truck on December 31, Year 3
