PA1. O 11.1 Selected accounts from Phipps Corporation's trial balance are as follows. Prepare the assets section of the company's balance sheet. PHIPPS CORPORATION Trail Balance December 31 (Selected Accounts) Debit Credit Cash $ 50,000 Short-term Marketable Securities 25,000 Accounts Receivable 13,000 Inventories 45,000 Other current Assets 10,000 Land 100,000 Equipment 45,000 Accumulated Depreciation Equipment $5,000 Goodwill 20,000 Other Intangible Assets 15,000 Phillips Corp. Balance Sheet Assets Current Assets Total Current Assets Fixed Assets Total Assets PA11. 11.5 Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After three years of recording depreciation, Montezuma determines that the delivery truck will only be useful for another three years and that the salvage value will increase to $4,000. Determine the depreciation expense for the final three years of the asset's life, and create the journal entry for year four. Original Cost Accumulated Depreciation for Previous Years Book Value, Beginning Year 4 Revised Salvage Value Revised Remaining Depreciation Cost . 3 Years Revised Useful Life Revised Depreciation, Total Revised Depreciation, Per Year