On July $7,$ Year $1,$ AAA Trucking bought a forklift for $$42,000$ cash. The estimated residual value is $$6,000,$ and estimated life is $8$ years. AAA Trucking has a December $31$ year end.

On September $19,$ Year $1,$ AAA Trucking purchased office equipment for $$70,000.$ The estimated residual value is $$10,000,$ and estimated life is $10$ years.

On November $4,$ Year $1,$ AAA Trucking purchased a customer list from a competitor for $$12,000.$ This is an intangible asset that will be amortized over $3$ years.

AAA Trucking uses days for year $1$ when calculating amortization.

Required

a$.$ Assume AAA Trucking uses straight$-$line depreciation. Prepare the journal entry to record amortization expense for Year $1.$ Provide a separate entry for each of the three assets.

b$.$ Assume AAA Trucking uses the double$-$declining balance method. Prepare the journal entry to record amortization expense for the forklift and the office equipment for Year $3$ and Year $4.$ Provide a separate entry for each asset.

Note: Please leave one empty row between each journal entry.Question $2(25$ marks$)$

a$.$ Straight line amortizations

Year

Year $1$

Year $2$

Yeas $3$

Year $4$

DoukeDeclining

$s$

b$.$ Double$-$declining bulance amortization:

Amortization Expense Per Year $-$ Forklift

Year

Year $1$

Deuble Declining

Year $2$

Year $3$

Yeas $4$

Double$-$Declining Balance:

Year $1$:

Year $2$:

Year $3$:

Yeas $4$;

I

Double$-$Declining Balance:

Yeas $1$:

Yeas $2$:

Year $3$:

Year $4$: