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

Year $1$

Jan. $1$ Paid $$20,515$ cash plus $$1,485$ in sales tax for a new delivery truck estimated to have a five$-$year life and a $$2,000$ salvage

value. Delivery truck costs are recorded in the Trucks account.

Dec. $31$ Recorded annual straight$-$line depreciation on the truck.

Year $2$

Dec. $31$ The truck's estimated useful life was changed from five to four years, and the estimated salvage value was increased to

$$2,400.$ Recorded annual straight$-$line depreciation on the truck.

Year $3$

Dec. $31$ Recorded annual straight$-$line depreciation on the truck.

$31$ Sold the truck for $$5,300$ cash.This problem focuses on revising depreciation and the disposal assets.

Some reminders:

When recalculating depreciation, you need to determine the book value. This is then used in the

calculation of depreciation in place of cost$.$

When the useful life is changed to four years, remember that there has already been one year of deprecation and

the remaining useful life is what is used in the equation.

Remember when recording the sale:

Loss is a debit

Gain is a credit.