Prepare depreciation schedule for the assets

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Reference no: EM13943578

1 Prepare a depreciation schedule for the assets in the following transactions using the straight line method of depreciation:

A: Flash Enterprises purchased 3 new delivery trucks at a cost of $45,000 each. Each truck as an estimated useful life of 5 years.

B: Flash neede a new forklift to be used in warehouse operations at a cost of $12,500. The old forklift was traded in for $1,500.

2 Analyze the results.

A: Flash has an opportunity to sell one of the trucks fro Question 1(a) above after 3 years for a price of $15,000. Should they accept the offer? Why or Why Not?

B: The used forklift from question 1(b) above had an original cost of $10,000 and a book value of 500 at the time of trade in. Calculate any gain or loss an show the appropriate journal entry.

Reference no: EM13943578

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