Question

Yoshi Company completed the following transactions and events involving its delivery trucks 2016 Jan. 1 Paid $22,015 cash plus 1,785 in sales tax for a new delivery truck estimated to have a five-year life and a Dec. 31 Recorded annual straight-line depreciation on the truck 2017 Dec. 31 Due to new information obtained earlier in the year, the truck's estimated useful life was changed from five to tlve-year te $2,150 salvage value. Delivery truck costs are recorded in the Trucks account. on the trded, la the Trucks acound. four years, and the estimated salvage value was increased to $2,700- Recorded annual straight-line depreciation on the truck. 2018 Dec. 31 Recorded annual straight-line depreciation on the truck. Dec. 31 Sold the truck for $5,600 cash. Required: 1-a. Calculate depreciation for year 2017, 1-b. Calculate book value and gain (loss) for sale of Truck on December, 2018. 1-c. Prepare journal entries to record these transactions and events Complete.