Yoshi Company completed the following transactions and events involving its delivery trucks.

2016

Jan.		1		Paid $25,015 cash plus $1,635 in sales tax for a new delivery truck estimated to have a five-year life and a $2,300 salvage value. Delivery truck costs are recorded in the Trucks account.
Dec.		31		Recorded annual straight-line depreciation on the truck.

2017

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.

2018

Dec.		31		Recorded annual straight-line depreciation on the truck.
Dec.		31		Sold the truck for $5,400 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.

Calculate depreciation for year 2017.

Total cost	$26,650selected answer correct
Less accumulated depreciation (from 2016)	4,870selected answer correct
Book value	21,780selected answer correct
Less revised salvage value	not attempted
Remaining cost to be depreciated	not attempted
Years of life remaining	not attempted
Total depreciation for 2017	0

Depreciation expense (for 2016)	not attempted
Depreciation expense (for 2017)	not attempted
Depreciation expense (for 2018)	not attempted
Accumulated depreciation 12/31/2018	0
Book value of truck at 12/31/2018
Total cost	not attempted
Accumulated depreciation	not attempted
Book value 12/31/2018	not attempted
not attempted	not attempted

Prepare journal entries to record these transactions and events.

	A	B	C	D	E
	No	Date	General Journal	Debit	Credit
1
2