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Wind bikes retail spends $200,000 on five new delivery trucks that they believe have a useful life of five years. Please answer the following questions for this transaction.
Problem 1: How much money is entered on the balance sheet in the year that the trucks were purchased?
Problem 2: How much money is entered as a depreciated expense in the year that the trucks were purchased?
Problem 3: How much money is depreciated each year after the first year?
Financial Statement Analysis and Preparation
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