Problem 8-5A Computing and revising depreciation; selling plant assets LO C2, P1, P2 Yoshi Company completed the following transactions and events involving its delivery trucks. 2016 1 Paid $23,515 cash plus $1,635 in sales tax for a new delivery truck estimated to have a five-year life and a $2,450 salvage value. Delivery truck costs are recorded in the Trucks account 31 Recorded annual straight-line depreciation on the truck. Jan Dec 2017 Dec. 31 Due to new information obtained earlier in the year, the truck's estimated useful life was changed from five to four years, and the estimated salvage value was increased to $2,550. Recorded annual straight-line depreciation on the truck 2018 Dec. 31 Recorded annual straight-line depreciation on the truck. Dec. 31 Sold the truck for $5,300 cash Required: 1-a. Calculate depreciation for year 2017 1-b. Calculate book value and gain (loss) for sale of Truck on December, 2018. 1-c. Prepare journal entries to record these transactions and events. Required 1A Required 1B Required 1C Calculate depreciation for year 2017. Total cost accumulated depreciation (from 2016) Book value Less revised salvage value Remaining cost to be depreciated Years of life remaining Total depreciation for 2017 Required 1B Required 1C Required 1A Calculate book value and gain (loss) for sale of Truck on Decem Depreciation expense (for 2016) Depreciation expense (for 2017) Depreciation expense (for 2018) Accumulated depreciation 12/31/2018 Book value of truck at 12/31/2018 Total cost |Accumulated depreciation Book value 12/31/2018 0 Required 1A Required 1B Required 1C Prepare journal entries to record these transactions and events. No Date General Journal Debit Credit 1 Jan 01, 2016 Trucks 25,150 Cash 25,150 4,540 Dec 31, 2016 Depreciation expense-Trucks 4,540 Accumulated depreciation-Trucks 3 Dec 31, 2017 Depreciation expense-Trucks 5,650 Accumulated depreciation-Trucks 5,650 4 Dec 31, 2018 Depreciation expense-Trucks 5,650 Accumulated depreciation-Trucks 5,650 Dec 31, 2018 Cash 5,300 5 Gain on sale of equipment 5,300