Case one:

$(18$ marks$)$

On July $31,2017$ a company purchased a truck for $85,000$$ with $5000$$ estimated salvage value and $6$ years' useful life. The company double declining method to recorded depreciation expenses during the years. In $31/03/2019$ the company decided to exchange the truck with a new and paid $50,000$$ when the fair value of old truck was $45,000$$ $($no commercial substances$)$ the new truck depreciated according to unit of activities with estimated total units $180,000$ miles, $4$ years useful life and $4047$ salvage value, the truck $20,000$ miles used in $2019$ and $45,000$ miles in$2020.$ After recorded depreciation in $31/12/2020$ the company was tested the truck for impairment and found the value in use was $59800$ and sales value $60500.$ There wasn't any change for useful life but salvage value estimated to be $4250$ but the company used the straight$-$line method to continue the depreciation.

Required; journalize all entries for this company from May $31/2017$ until $31/12/2021.$