Barrie Trucking Company (BTC) was privately incorporated in 1983 and services the Greater Toronto Area and the Highway 11 corridor in Ontario. BTC is in the "less than load" business, making its money by filling the trucks with several smaller loads and delivering them to and from Toronto.

Recently, the financial controller for BTC retired, leaving the owner, Klaus Bauer, looking for a new one. After several months of interviews, Klaus made an offer to you for the position and with a hefty pay raise and substantial benefits, you accepted. This is your first week on the job, it is now December 31, and you need to make all of the property, plant, and equipment journal entries today that haven't been done as of yet. BTC's year end is December 31.

1. On January 1, the previous controller determined that trucks with a cost of $550,000 and accumulated amortization of $110,000 would actually have an estimated useful life of nine more years with no residual. The previous estimated useful life had been 10 years, with two years having already passed (so the useful life of nine years is from January 1 and beyond).
2. BTC has internally developed a strong customer list of its own. The owner, Klaus, has stated that this list is worth about $150,000 if sold.