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Christopher and Company purchased a truck on March 1, 2024, for $30,000. Estimated life of the truck is 6 years, and its estimated residual value
Christopher and Company purchased a truck on March 1, 2024, for $30,000. Estimated life of the truck is 6 years, and its estimated residual value was $3,000. Christopher uses the straight line method of depreciation and uses a calendar year accounting period. The journal entry to record the depreciation expense for 2024 on the truck is: (Do not round any intermediate calculations. Round your final answer to the nearest dollar.) 6,000 O A. Depreciation Expense-Truck Accumulated Depreciation-Truck 6,000 5,000 B. Depreciation Expense--Truck Accumulated Depreciation-Truck 5,000 O c. Depreciation Expense - Truck Accumulated Depreciation-Truck 4,500 4,500 3,750 D. Depreciation Expense--Truck Accumulated Depreciation-Truck 3,750 Fencing Travis, Inc. purchased land to build an office. In the first quarter, the following amounts were incurred: Acquisition of land $48,000 Architectural Fee 5,700 Lawn sprinkler system 2,900 Surveys and legal fees 2,500 Land clearing 1,900 Contractor charges for building 57,000 8,100 Material and labor cost for building 300,000 Install lighting and signage 1,000 Parking lot 2,900 What amount should be recorded as the cost of the building in the corporation's books? O A $430,000 B. $375,200 C. $365,600 D. $362,700 Jason and Company sold a truck for $3,000. The truck had initially cost $30,000 when new, and the truck had accumulated depreciation of $16,000 when it was sold. The amount of gain or loss from this sale is: A. a gain of $11,000 B. a loss of $11,000 OC. a gain of $14,000 D. a loss of $14,000
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