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Frosty's Ice Cream company bought an ice cream truck for $27,000 on August 1st, 2014. Frosty's icecream depreciates the new truck using the straight-line method.
Frosty's Ice Cream company bought an ice cream truck for $27,000 on August 1st, 2014. Frosty's icecream depreciates the new truck using the straight-line method. The truck has a useful life of 7 years with a salvage value of $2,700. On May 31st, 2018, Frosty's Ice Cream sold the ice cream truck for $10,000.
(a) update the depreciation for May 31st, 2018
(b) record the sale of the truck for May 31st, 2018.
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