a. Thoms Company incurs these expenditures in purchasing a truck: cash price $24,000,...
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Accounting
a. Thoms Company incurs these expenditures in purchasing a truck: cash price $24,000, accident insurance (during use) $2,000, sales taxes $1,080, motor vehicle license $300, and painting and lettering $1,700. What is the cost of the truck? Make the appropriate journal entry to record all elements of the purchase. b. Thoms expects to use the truck for five years and then dispose of it for $5,000. Thoms uses straight-line depreciation for all vehicles. What adjusting entry will Thoms make at 12/31/20? At 12/31/21? What is the book value of the truck on 12/31/21? C. On 1/2/24, Thoms has an opportunity to sell the truck for $13,000, and decides to do so. What journal entry will Thoms make to record the disposal? Does this seem like a wise move on Thoms' part
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