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I know they're 2 tasks but they're short and id appreciate it a lot thank u Task 1.1: Vijay's Deliveries purchased a truck on February
I know they're 2 tasks but they're short and id appreciate it a lot thank u
Task 1.1: Vijay's Deliveries purchased a truck on February 1, 2015. The truck cost $40 000, has a useful life of seven years and a residual value of $5 000. It is estimated that over life of the truck, it will be able to travel 500 000 km. It traveled 120 000 km in 2015, and is projected to travel 110 000 km in 2016.Calculate the amortization expense for 2015 using the three methods of amortization (straight-line, usage and double declining balance) at December 31. Show your work. Straight Line Method Usage Method Double Declining Balance Method Task 1.3: The Reid Beverages Corporation acquired a new truck that had a list price of $50 000 on January 1, 2015. They traded in their old truck. The old truck had a historical cost of $35 000, with accumulated amortization of $25 000. The company paid the list price minus the trade-in amount of $3 000. The fair market value of the old machine was $2 000. Record the journal entry for this transaction. Journal - Page 30 Date 20-- Accounts and Explanation PR Debit CreditStep by Step Solution
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