Question

Apex Trucking purchased a truck for $100,000 on January 1, 2014. The useful life of the truck was estimated to be either five years or 200,000 miles. Salvage value was estimated at $20,000. Over the actual life of the truck, it logged the following miles:
Year 1 ......... 48,000 miles
Year 2 ......... 35,000 miles
Year 3 ......... 40,000 miles
Year 4 ......... 25,000 miles
Year 5 ......... 35,000 miles
Year 6 ......... 10,000 miles
At the end of the sixth year, the truck was sold for $12,000.
Prepare the journal entries to record depreciation over the life of the truck and its sale, assuming these methods:
1. Activity method
2. Straight-line method



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  • CreatedAugust 19, 2014
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