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Clarke Inc. owns a tractor trailer with the following data at December 31, 2015: Cost $ 750,000 Accumulated Depreciation $ 250,000 Residual value $ -
Clarke Inc. owns a tractor trailer with the following data at December 31, 2015: | |||||
Cost | $ 750,000 | ||||
Accumulated Depreciation | $ 250,000 | ||||
Residual value | $ - | ||||
Remaining useful life | 16 | years | |||
Fair value - December 31, 2015 | $ 580,000 | ||||
Fair value - December 31, 2018 | $ 375,000 | ||||
Fair value - December 31, 2020 | $ 350,000 | ||||
Instructions: | |||||
Assuming the company uses the revaluation model for dealing with its vehicles provide all necessary entries at the following dates and situations. (Show all calculations) | |||||
a) December 31, 2015. Assume all depreciation has already been recorded. | |||||
b) The depreciation entry at December 31, 2016 (depreciation for the year). | |||||
c) December 31, 2018. Assume all depreciation has already been recorded. |
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