186. The Oberon Company purchased adelivery truck for $95,000 on January 2. The truck was estimated to have a $3,000 salvage value and a 4 year life. The truck was depreciated using the straight-line method. At the beginning of the third year, it was obvious that the truck’s total useful life would be 6 years rather than 4, and the salvage at the end of the 6th year would be $1,500. Determine the depreciation expense for the truck for the 6 years of its life.
Year
Depreciation expense
1
2
3
4
5
6
187. McClintock Co. had the following transactions involving plant assets during Year 1. Unless otherwise indicated, all transactions were for cash.
Jan. 2
Purchased a truck for $70,000 plus sales taxes of $3,000. The truck is expected to have a $14,000 salvage value and a 4 year life.
Jan. 3
Paid $2,500 to have the company’s logo painted on the truck. This did not change the truck’s salvage value.
Dec. 31
Recorded straight-line depreciation on the truck.
Prepare the general journal entries to record these transactions.
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