Question: Refer to the information for Irons Delivery Inc above Irons

Refer to the information for Irons Delivery Inc. above. Irons uses the units-of-production method of depreciation. Irons expects the truck to run for 160,000 miles. The actual miles driven in 2011 and 2012 were 40,000 and 36,000, respectively.
Irons Delivery Inc. purchased a new delivery truck for $45,000 on January 1, 2011. The truck is expected to have a $3,000 residual value at the end of its five-year useful life.

Prepare the journal entry to record depreciation expense for 2011 and 2012.

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  • CreatedSeptember 22, 2015
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