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Question - Van Winkle Shipping Corporation purchased 10 new Freightliner Tractor semi trucks on February 28 of the current year at a cost of $165,900 per truck. The trucks have estimated useful lives at the time of purchase of 10 years, and each truck has an estimated residual value of $37,750. The company reports on a calendar year basis.
A. Prepare a complete depreciation schedule, beginning with the current year, under each of the methods listed assuming that Van Winkle employs the half-year convention.
-Straight-line
-Double declining balance
B. Assume Van Winkle sells 3 of the trucks at the end of the fourth year for $87,950 cash per truck. Prepare in good form the journal entry to record the sale under the alternative depreciation methods.
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