Gotham City Deliveries purchased a company vehicle on for $ The estimated salvage value for the vehicle is $ at the end of its year useful life. The estimated productive life of the vehicle is estimated to be miles. Annual milage of the vehicle is as follows: : miles, : miles, : miles.
Calculate depreciation for the vehicle for and using straightline, units of production, and double declining balance methods of depreciation.
Now assume on Gotham City Deliveries decided to sell the vehicle for $ Assuming the company has been using the straightline method of depreciation:
a How much TOTAL depreciation should have been recorded for the vehicle as of the time of the sale?
b What was the gain or loss on the sale?
c Prepare the journal entry that will be recorded on to reflect the sale.
