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ACT 229 Homework Question

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Question;Truck A is purchased on 1-1-X1 for 15,500. Straight-line depreciation is used,with a salvage value of 1,500. Estimated useful life is 5 years. On 12-31-X4 weare going to trade in truck A for truck B with a FMV of $18,000. Trade inallowance is $3,500. Answer the following:1. How much is the annual depreciation for truck A using straight linedepreciation? ____________________2. What is the journal entry to record depreciation for Truck A for 12-31-X13. What is the accumulated depreciation for truck A as of 12-31-X4, usingstraight-line depreciation? _____________________4. What is the book value of truck A on 12-31-X4?_________________5. Is there a gain or loss for the trade in?GainLoss6. What is the dollar value of the gain or loss?__________________7. How much cash will we have to pay out for truck B?_____________8. What is the journal entry needed to record the exchange on 12-31-x4?9. If we had used the double declining method of depreciation, what would be thedepreciation expense for year 1? ______________10. If we had used the double declining method of depreciation, what would be thedepreciation expense for year 2?

 

Paper#38624 | Written in 18-Jul-2015

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