Miranda Valley Transport is a large trucking company. Miranda Valley Transport uses the units-of-production (UOP) method to depreciate its trucks. In 201 1 , Miranda Valley Transport acquired a Mack truck costing $390,000 with a useful life of 1 0 years or 650,000 miles. Estimated residual value was $65,000. The truck was driven 81 ,000 miles in 201 1 , 1 1 6,000 miles in 201 2, and 1 31 ,000 miles in 201 3. After 30,000 miles in 201 4, Miranda Valley Transport traded in the Mack truck for a new Freightliner that costs $41 6,000. Regional Highway Transport received a $226,000 trade-in allowance for the old truck and paid the difference in cash. Journalize the entry to record the purchase of the new truck.
Answer to relevant QuestionsPart 1. Morris Printing manufactures high-speed printers. On January 1, of year 1,Morris Printing recently paid $700,000 for a patent on a new laser printer. Although it gives legal protection for 20 years, the patent is ...Tri-State Manufacturing incurred the following costs in acquiring land, making land improvements, and constructing and furnishing a new building.a. Purchase price of four acres of ...Marsellus Manufacturing incurred the following costs in acquiring land, making land improvements, and constructing and furnishing a new building.a. Purchase price of four acres of ...This problem continues our accounting for Pure Water, Inc., from Chapter 7 . During 2012, PureWater made the following purchases:■ On May 3, Pure Water, Inc., purchased a copy machine for $2,400 cash. The copy machine ...Will interest expense be greater than, less than, or equal to the interest payment made on bonds when the bonds are sold ata. par?b. a premium?c. a discount?
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