Calculate the annual depreciation on the truck

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Reference no: EM132753556

Question: Eric's Excavations has a financial year which ends on the 30thThe truck was sold on 31 December 2020 for $320,000.

June. Eric purchased a truck for $400,000 on 1 July 2019, and estimates that the asset will have a residual value of $100,000 and a useful life of 5 years.

Required: Calculate the annual depreciation on the truck for the year ended 30th June 2020 and prepare the adjusting journal entry for depreciation.

Reference no: EM132753556

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