Refer to the information for Irons Delivery Inc. above. Irons uses the straight-line method of depreciation.
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.
Required:
Prepare the journal entry to record depreciation expense for 2011 and 2012.