Yoshi Company completed the following transactions and events involving its delivery trucks.
2016
Jan. 1 - Paid $22,015 cash plus $1,635 in sales tax for a new delivery truck estimated to have a five-year life and a $2,000 salvage value. Delivery truck costs are recorded in the Trucks account. Dec. 31 - Recorded annual straight-line depreciation on the truck.
2017
Dec. 31 - Due to new information obtained earlier in the year, the truck's estimated useful life was changed from five to four years, and the estimated salvage value was increased to $2,850. Recorded annual straight-line depreciation on the truck.
2018
Dec. 31 - Recorded annual straight-line depreciation on the truck. Dec. 31 - Sold the truck for $5,400 cash.
Required:
1-a. Calculate depreciation for year 2017.
1-b. Calculate book value and gain (loss) for sale of truck on December 2018.
1-c. Prepare journal entries to record these transactions and events.
Calculate depreciation for 2017:
Total Cost, Less Depreciation, Book Value, Less Revised Salvage Value, Remaining cost to be depreciated, years of life remaining, total depreciation for 2017.
Calculate book value and gain (loss) for sale of truck on December 2018:
Depreciation expense for (2016), (2017), & (2018), Accumulated depreciation 12/31/2018, Book value of truck at 12/31/2018, Total Cost, Accumulated Depreciation, Book value 12/31/2018.