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Montezuma Inc. purchases a delivery truck for $18,200. The truck
has a salvage value of $3,000 and is expected to be driven for 8
years. Montezuma uses the straight-line depreciation method.
Calculate the annual depreciation expense. After three years of
recording depreciation, Montezuma determines that the delivery
truck will only be useful for another three years and that the
salvage value will increase to $5,000.
A. Determine the Depreciation Expense for
the final three years of the asset’s life. Round final
answer to nearest whole dollar.
$fill in the blank 70901203802ffd3_1 per year
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When revising deprecation schedules, the book value is used as
the adjusting base to apply the new changes to when determine the
revised yearly depreciation amount.
B. Prepare the journal entry for year
four. If an amount box does not require an entry, leave it
blank. Round final answer to nearest whole
dollar.
Accumulated Depreciation-Delivery TruckCashDepreciation
ExpenseInventoryPatentDepreciation Expense
Accumulated Depreciation-Delivery TruckCashDepreciation
ExpenseInventoryPatentAccumulated Depreciation-Delivery Truck
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