X Company purchased a new delivery truck at the beginning of the fiscal year. The truck cost $26,000 and has an estimated useful life of four years and estimated salvage value of $4,000. Required: 1. Prepare a depreciation schedule showing Net Book value (beginning and ending), depreciation expense, and accumulated depreciation for the asset. Prepare one schedule for each method: a. Straight-line b. Double-declining balance

2. X Company receives an offer for the truck for $6,200 at the end of the third year. a. What factors should X Company consider in determining whether to sell or keep the truck? b. Assume the truck is sold. Prepare the appropriate journal entry showing sale of the truck.

How do you prepare the appropriate journal entry from the info provided above?