Wildcats, Inc. purchased a truck on 1/1/2016, at a cost of $88,000. The machine's estimated useful...

 

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Wildcats, Inc. purchased a truck on 1/1/2016, at a cost of $88,000. The machine's estimated useful life at the time of the purchase was 4 years, with $4,000 estimated salvage value. Wildcats uses the straight-line depreciation method. INSTRUCTIONS: A. Complete the depreciation schedule from 2016 through 2019 for the truck. Year 2016 2017 2018 2019 M Cost - Salvage Depreciable Base = 1/Life SL Rate Annual Depreciation Expense Accumulated Depreciation = Cost- Accumulated Depreciation Ending NBV B. Record the journal entry at the end of 2019 when Wildcats sells the machine for $4,000. C. Assume Wildcats sells the machine on January 1, 2018 for $11,000 cash. Compute the resulting gain or loss from the sale and record the journal entry to recognize the sale. 167 Wildcats, Inc. purchased a truck on 1/1/2016, at a cost of $88,000. The machine's estimated useful life at the time of the purchase was 4 years, with $4,000 estimated salvage value. Wildcats uses the straight-line depreciation method. INSTRUCTIONS: A. Complete the depreciation schedule from 2016 through 2019 for the truck. Year 2016 2017 2018 2019 M Cost - Salvage Depreciable Base = 1/Life SL Rate Annual Depreciation Expense Accumulated Depreciation = Cost- Accumulated Depreciation Ending NBV B. Record the journal entry at the end of 2019 when Wildcats sells the machine for $4,000. C. Assume Wildcats sells the machine on January 1, 2018 for $11,000 cash. Compute the resulting gain or loss from the sale and record the journal entry to recognize the sale. 167

Answer rating: 100% (QA)

A Depreciation per year on the basis of straight line depreciation Cost Salvage value Life 88000 400... View the full answer