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On January 1, 2022, a small business purchased a delivery truck for $50,000. The business expects to use the truck

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On January 1, 2022, a small business purchased a delivery truck for $50,000. The business expects to use the truck for 5 years with no salvage value at the end of the useful life. The company uses the straight-line method of depreciation. During the year ended December 31, 2022, the company used the truck for delivery purposes and incurred operating expenses of $25,000. The company also sold the truck on June 30, 2023, for $25,000.

(a) Calculate the depreciation expense for the year ended December 31, 2022.

(b) Calculate the net income for the year ended December 31, 2022.

(c) Record the sale of the truck on June 30, 2023.

(d) Calculate the gain or loss on the sale of the truck.

(e) Prepare the journal entry to record the sale of the truck.

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The detailed answer for the above question is provided below a Depreciation expense for the year end View the full answer


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Related Book For  answer-question
Accounting Principles

Accounting Principles

ISBN: 9781119707110

14th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell

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Posted Date: February 16, 2023 23:09:23
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