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  3. on 4/1/20, kipper company incurred these expenditu

On 4/1/20, Kipper Company incurred these expenditures in purchasing a truck: cash price $48,000, accident...

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Accounting

On 4/1/20, Kipper Company incurred these expenditures in purchasing a truck: cash price $48,000, accident insurance (during use) $2,000, sales taxes $2,640, motor vehicle license $300, and painting and lettering $1,350. Kipper expects to use the truck for five years (or 100,000 miles) and then dispose of it for $8,000. Compute the depreciation expense for 2021 (second year) and the book value of the asset at 12/31/21 after adjustments, using each of the four GAAP depreciation methods that we covered in class. Assume that Kipper drove 6,000 miles in 2020 and 21,000 miles in 2021. On 1/2/24 Kipper has an opportunity to sell the truck for $25,000, and decides to do so. Assuming that Kipper has used straight-line depreciation, what journal entry will Kipper make to record the disposal?

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