On July 9, 2019, a truck was purchased for $27,000 with a $2,000 salvage value, is expected to last five years & 40,000 miles. Use the partial year convention to depreciate fractional periods. Note: you may not require all the given information to solve.

1). Straight line depreciation expense for 2020 will be:

500

27,000-2,000/5=12/12

=5x1

=500

2).

Show the journal entry to record depreciation for 2020

Depreciation expense 500

Accumulated Depreciation -Truck 500