Question: Gandiaga owns a truck that it purchased two years ago
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.
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