Coyote Manufacturing bought a delivery truck for $50,000 on July 1, 2017. The registration fee for the truck was $4,000. Coyote also spent $2,000 to paint its logo on the truck. Coyote estimated that the useful life would be four years or 200,000 miles and the residual value at the end of the useful life be $3,000. The mileage to be added to this truck during its useful life are

               2017             2018             2019              2020              2021

       30,000        54,000       52,000          44,000       20,000

Instructions:

1. Prepare journal entries for the purchase of the truck on July 1. 2017.
2. Compute depreciation expenses on the truck for the years ending on December 31 of 2017 and 2018     using the following methods;      1) Straight-line method,

2) Activity-based method,

3) Sum-of-the-years'-digit,

4) Double declining method.

3. Coyote sold this truck for $20,000 on January 1, 2019

- Prepare any necessary journal entries for this sale using

1) the sum-of-years-digit method.

2) the double-declining balance method