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Question 2 ( 2 5 marks ) On July 7 , Year 1 , AAA Trucking bought a forklift for $ 4 2 , 0
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On July Year AAA Trucking bought a forklift for $ cash. The estimated residual value is $ and estimated life is years. AAA Trucking has a December year end.
On September Year AAA Trucking purchased office equipment for $ The estimated residual value is $ and estimated life is years.
On November Year AAA Trucking purchased a customer list from a competitor for $ This is an intangible asset that will be amortized over years.
AAA Trucking uses days for year when calculating amortization.
Required
a Assume AAA Trucking uses straightline depreciation. Prepare the journal entry to record amortization expense for Year Provide a separate entry for each of the three assets.
b Assume AAA Trucking uses the doubledeclining balance method. Prepare the journal entry to record amortization expense for the forklift and the office equipment for Year and Year Provide a separate entry for each asset.
Note: Please leave one empty row between each journal entry.
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