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On Jan 1, 2018 Lisas Limos purchases a fleet of 10 cars with a total...

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Accounting

  1. On Jan 1, 2018 Lisas Limos purchases a fleet of 10 cars with a total cost of $205,000.00. They paid sales tax of $15,000. The Autos have a $20,000.0 Salvage value for each car and a 5 Year useful life.

Required:

  1. Prepare and record the annual Depreciation Using Straight-Line Depreciation Method for 2018 & 2019?
  2. What is the Carrying Value of the Equipment on December 31, 2019?

c. Assume Lisa sells the cars on Jan 1, 2020 for $150,000 cash. What would the entry be to record the sales of the cars?

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