EXPLAIN VERY CLEARLY HOW YOU COMPUTED Less depreciation to date [($168,000 6) 2 1/2] PART (like how is it 6, and 2 1/2 being used in it, so it makes sense and is transparent); as well as Accumulated DepreciationTrucks ($115,500 5.5 yrs) at the end of the journal entries (namely how is it 5.5, explain), please.

A truck was acquired on July 1, 2018, at a cost of $189,000. The truck had a six-year useful life and an estimated salvage value of $21,000. The straight-line method of depreciation was used. On January 1, 2021, the truck was overhauled at a cost of $17,500, which extended the useful life of the truck for an additional two years beyond that originally estimated (salvage value is still estimated at $21,000). In computing depreciation for annual adjustment purposes, expense is calculated for each month the asset is owned.

Instructions

Prepare the appropriate entries for January 1, 2021 and December 31, 2021.