Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting Foundations and Evolutions

Authors: Michael R. Kinney, Cecily A. Raiborn

8th Edition

978-1111626822

Students also viewed these Accounting questions

Question

14.3 What are value drivers? How can they be misused in M&A models?

Answered: 1 week ago