Gandiaga owns a truck that it purchased two years ago at a total cost of $ 29,250. At that time it was estimated that the company would use the truck for six years and then sell it for $ 1,850. Recently, Gandiaga modified the truck at a cost of $ 4,500. This modification did not extend the life of the truck, nor did it change the estimated salvage value. Prepare journal entries to record the cost of the upgrade and the depreciation expense for the third year assuming that Gandiaga uses straight-line depreciation.
Answer to relevant QuestionsHutt Company purchased a building 12 years ago at a price of $ 850,000. At that time, useful life was estimated at 25 years with a $ 175,000 salvage value, and straight- line depreciation was used. After recording ...Down ham Industries recently completed several transactions relating to plant assets. For each transaction described, determine the dollar amount to be capitalized as well as the account title to be used. A. Down ham ...Leziy Corporation owns a coal mine, an oil field, and a tract of timberland. Information regarding these assets follows: 1. The coal mine was purchased several years ago at a total cost of $ 865,000. The mine was esti-mated ...Why are discontinued operations and extraordinary items shown net of tax on the income statement? How is return on investment for a division determined? Why is this information important?
Post your question