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Gomma Enterprises purchased a delivery truck January 1, 2018 for $50,000. The truck was expected to have a useful life of 10 years and a
Gomma Enterprises purchased a delivery truck January 1, 2018 for $50,000. The truck was expected to have a useful life of 10 years and a residual value of $10,000. On January 1, 2022 the accumulated depreciation balance on the truck was $16,000 and the 2022 depreciation is calculated as $4,000. E During 2022 Gomma had the following transactions related to the truck: 1. Oil and filter change $800 2. Engine overhaul $7,500 which will extend the useful life of the truck by 3 years. The residual value has been revised to $12,500. 3. Insurance $2,500 4. Licence plate renewal $175 Calculate the carrying value of the truck on December 31, 2022. Clearly show calculations for numbers that are not given JAN 1 2018 50000 DEPRECAITION TILL 2022 20000
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