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On March 1, 2011, Chicago Furniture purchases a new delivery truck. The company pays $65,000 for the truck, sales taxes of $3,400, and delivery costs
On March 1, 2011, Chicago Furniture purchases a new delivery truck. The company pays $65,000 for the truck, sales taxes of $3,400, and delivery costs of $1,700 Chicago Furniture also pays $12,000 for an annual insurance policy and $1,300 for a motor vehicle license. The truck will have 5 years useful life and $5,000 salvage value. The company uses straight-line depreciation method. On May 31, 2012, this company Incurred ordinary repairs on the truck of $1,400. On October 1, 2013, this company spent $20,000 for major overhaul to extend the life of the truck. On June 1, 2014, the company sold this truck to Jones co. for $15,000. Prepare the journal entry related to the truck from March 1, 2011 to June 1, 2014. Be sure to indicate the date on which the entries would be made
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