Mother Hips Garment Company purchased 2 trucks on Jan 1 2016 for $1,000,000 each, paying $20,000 cash and signing a 9%, 2-year note for the remaining balance. The double-declining balance method of depreciation is used to compute the truck's depreciation charges and their expected useful life is 10 years or 100,000 miles. 15,000 miles were driven, 18,500 in 2017, 15,600 in 2018, 17,000 in 2019, 14,500 in 2020, 10,800 in 2021 and 12,800 in 2022. The residual value on both truck is $209,715 each. On September 1, 2022, the company sold one of the trucks to Daley Company for $400,000 on credit. Round off answers to the nearest dollars.

Instructions Prepare the general journal entry to record the acquisition of trucks on Jan I st. Prepare necessary journal entries that reflect the sale of one of the trucks on September 1,2022 (Depreciate the trust until 8/31, pay interest on the note payable, and sales) Prepare any adjusting journal entries that should be made on December 31, 2022. what is the gain or loss if the bus useful life is 5 years instead of 8 years in question (b) above?