Yoshi Company completed the following transactions and eventsinvolving its delivery trucks.

2016

Jan.		1		Paid $22,015 cash plus $1,485 in sales tax for a new deliverytruck estimated to have a five-year life and a $2,000 salvagevalue. Delivery truck costs are recorded in the Trucksaccount.
Dec.		31		Recorded annual straight-line depreciation on the truck.

2017

Dec.

31

Due to new information obtained earlier in the year, thetruck’s estimated useful life was changed from five to four years,and the estimated salvage value was increased to $2,850. Recordedannual 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 year2017.
1-b. Calculate book value and gain (loss) for saleof Truck on December, 2018.
1-c. Prepare journal entries to record thesetransactions and events.

Calculate depreciation for year 2017.

	Total cost Less accumulated depreciation (from2016) Book value Less revised salvage value Remaining cost to be depreciated Years of life remaining Total depreciation for2017

Calculate book value and gain (loss) for sale of Truck onDecember, 2018.

	Depreciation expense (for 2016) Depreciation expense (for 2017) Depreciation expense (for 2018) Accumulated depreciation12/31/2018 0 Book value of truck at 12/31/2018 Total cost Accumulated depreciation Book value 12/31/2018

• 1

  Record the total cost of the new delivery truck.

• 2

  Record the year-end adjusting entry for the depreciation expenseof the delivery truck.

• 3

  Record the year-end adjusting entry for the depreciation expenseof the delivery truck.

• 4

  Record the year-end adjusting entry for the depreciation expenseof the delivery truck.

• 5

  Record the sale of the delivery truck for $5,400 cash.