On January 1, 2019, Valdez Limited purchased a truck at a total cost of $ 110,000....
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On January 1, 2019, Valdez Limited purchased a truck at a total cost of $ 110,000. The company's fiscal year end is December 31st, and the company records the depreciation annually, at the end of the The estimated residual value is $ 50,000; estimated life of this truck is 5 years or year. 200,000 km driven. During 2019 the truck was driven 25,000 km, during 2020 the truck was not driven at all due to COVID 19 shut down, and during 2021 the truck was driven 19,000 km. Required: Prepare a depreciation entry for year 2021. (2 marks) i. ii. Using the scenario above and assuming that the vehicle was sold on March 31, 2020, for $ 90,000, prepare a journal entry to record the sale of truck. (2 marks) On January 1, 2019, Valdez Limited purchased a truck at a total cost of $ 110,000. The company's fiscal year end is December 31st, and the company records the depreciation annually, at the end of the The estimated residual value is $ 50,000; estimated life of this truck is 5 years or year. 200,000 km driven. During 2019 the truck was driven 25,000 km, during 2020 the truck was not driven at all due to COVID 19 shut down, and during 2021 the truck was driven 19,000 km. Required: Prepare a depreciation entry for year 2021. (2 marks) i. ii. Using the scenario above and assuming that the vehicle was sold on March 31, 2020, for $ 90,000, prepare a journal entry to record the sale of truck. (2 marks)
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Given Cost of truck 110000 Estimated residual value 50000 Estimated life 200000 km or 5 Year Formula ... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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