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Yoshi Company completed the following transactions and events involving its delivery trucks

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Yoshi Company completed the following transactions and events involving its delivery trucks.

 

Year 1

Jan. 1 Paid $23,515 cash plus $1,785 in sales tax for a new delivery truck estimated to have a five-year life and a $2,450 salvage value. Delivery truck costs are recorded in the Trucks account.Dec. 31 Recorded annual straight-line depreciation on the truck.

 

Year 2

Dec. 31 The truck's estimated useful life was changed from five to four years, and the estimated salvage value was increased to $2,700. Recorded annual straight-line depreciation on the truck.

 

Year 3

Dec. 31 Recorded annual straight-line depreciation on the truck.Dec. 31 Sold the truck for $5,300 cash.

 

Required:

1-a. Calculate depreciation for Year 2.

1-b. Calculate book value and gain (loss) for sale of Truck on December 31, Year 3.

1-c. Prepare journal entries to record these transactions and events.

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