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Cowboy Ice Cream Company (CIC) purchased a new Ice Cream Truck to use in the retail division on January 1, Year 1, for $21,900. In
Cowboy Ice Cream Company (CIC) purchased a new Ice Cream Truck to use in the retail division on January 1, Year 1, for $21,900. In addition, CIC paid sales tax and title fees of $670 for the vehicle. The truck is expected to have a five-year life and a salvage value of $5,550 Required a. Using the straight-lne method, compute the depreciation expense for Year 1 and Year 2. (Round your answers to the nearest whole dollar amount.) b. Assume the truck was sold on January 1, Year 3, for $18,126. Determine the amount of gain or loss that would be recognized on the asset disposal (Round the Intermediate calculations to nearest whole dollar amount.) a. Year 1 Depreciation Year 2 Depreciation b. per year per year on sale
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