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Linton Company purchased a delivery truck for $34,000 on July 1, 2022. The truck has an expected salvage value of $2,000, and is expected
Linton Company purchased a delivery truck for $34,000 on July 1, 2022. The truck has an expected salvage value of $2,000, and is expected to be driven 80,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,000 in 2022 and 12,000 in 2023. Linton uses the straight-line method of depreciation. Instructions a. Complete the grid below related to the questions asked. Depreciation Expense Accumulated Depreciation Net Book Value 2022 2023 b. Prepare the journal entry to record 2022 depreciation. c. Prepare the journal entry to record 2023 depreciation. d. How much gain or loss if the truck was sold on June 30, 2024 for an amount of $30,000. Also, show the entry for the sale (for Cash). TIP: Get depreciation "current" through the time of sale. Then calculate gain or loss by comparing sale price to NBV. CK-Gain of $4,000.
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