Question $8($Fixed Asset Depreciation$)(70$ points$)$

On June $11,2024,$ Swanson takes delivery of a new electric forklift for their warehouse. In addition to the $$45,000($plus $10\%$ sales tax$)$ purchase price, they paid $$2,400$ for a charger unit and electrical installation work at $$3,060$ to get everything up and running $($those two items included sales tax$)$

a$.$ With straight$-$line depreciation, a $6-$year useful life and a salvage value of $$6,000,$ what is the depreciation expense per month?

b$.$ Fill in this depreciation table for this asset $($all the blank boxes$)$:

Beginning Book Value, $6-11-2024$ $

Calendar Year: Depreciation Expense: Accumulated depreciation as of $12-31$: Book Value as of $12-31$:

$2024$

$2025$

$2026$

$2027$

$2028$

$2029$

$2030$

c$.$ If Swanson decided to sell the used forklift for $$7,200$ on July $1,2030,$ what would be the gain or loss on such a sale?

d$.$ In the journal below please journalize the following:

$1.$ The initial purchase of the forklift $($incl$.$ all the extras$),$ assuming it was purchased on credit $($you can lump the purchases together$)$

$2.$ The depreciation for $2024$

$3.$ The sale of the forklift on July $1,2030$

GENERAL

DATE ACCOUNT TITLE DEBIT CREDIT

e$.$ Lastly, if they had used the double declining balance method instead of the straight$-$line method, what is the annual percentage rate they would have to apply?