Prepare journal entry to record depreciation on the truck

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Problem 1: JS's policy is to prorate depreciation in the year of acquisition and year of disposal (based on the month acquired or disposed). Depreciation is only calculated and recorded once per year, at year end, unless an asset is sold. On March 1, 2018, MM purchased a new delivery truck with a cost of $56,000, a residual value of $3,000, and a useful life of eight years. The truck is being depreciated on a straight-line basis. Jason Sangha would like you to calculate and prepare the journal entry to record the depreciation on the truck for the December 31, 2018, year end.

Reference no: EM133003404

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