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Sam's Subs purchased a delivery van on January 1, 2013, for $35,000. In addition, Sam's paid sales tax and title fees of $1,500 for the van. The van is expected to have a four-year life and a salvage value of $6,500.
Required:
a. Using the straight-line method, compute the depreciation expense for 2013 and 2014.
b. Prepare the general journal entry to record the 2013 depreciation.
c. Assume the van was sold on January 1, 2016, for $21,000. Prepare the journal entry for the sale of the van in 2016.
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