Problem 10-5A Computing and revising depreciation; selling plant assets LO C2, P1, P2 Yoshi Company completed the following transactions and events involving its delivery trucks. 2014 Jan. 1 Paid $22,015 cash plus $1,635 in sales tax for a new delivery truck estimated to have a five-year life and a $2,150 salvage value. Delivery truck costs are recorded in the Trucks account. Dec. 31 Recorded annual straight-line depreciation on the truck. 2015 Dec. 31 Due to new information obtained earlier in the year, the trucks estimated useful life was changed from five to four years, and the estimated salvage value was increased to $2,700. Recorded annual straight-line depreciation on the truck. 2016 Dec. 31 Recorded annual straight-line depreciation on the truck. Dec. 31 Sold the truck for $5,400 cash. Required: Calculate depreciation for year 2015.

Required: Calculate depreciation for year 2015. total cost

less accumulated depreciation from 2014

book value

less revised salvage value

remaining cost to be depreciated

years of life remaining

total depreciation for 2015

Calculate book value and gain (loss) for sale of Truck on December, 2016.

Depreciation expense 2014

Depreciation expense 2015

Depreciation expense 2016

Accumulated Depreciation 12/31/16

Book value of truck at 12/31/2016

total cost

Accumulated Depreciation

book value 12/31/2016

Prepare journal entries to record these transactions and events.