Essay
Dayton Ridge Co. purchased new trucks at the beginning of 2015 for $600,000. The trucks had an estimated life of 4 years and an estimated residual value of $50,000. Dayton Ridge uses straight-line depreciation. At the beginning of 2016, Dayton Ridge sold the trucks for $480,000 and purchased new trucks for $700,000. Determine the following amounts:
A. Book value of the trucks at the end of 2015.
B. Gain loss on the sale of the trucks at the beginning of 2016 Indicate the amount and whether a gain or loss.
Correct Answer:
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A. Depreciation expense: $600,...View Answer
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Correct Answer:
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