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Events related to the acquisition, use and deposal of a tangible plant asset: straight-line depreciation Sam’s Subs purchased a delivery van on January 1,2013 for $35,000. In addition, Sam’s paid sales tax and title fees of $1500 for the van. The van is expected to have four-year life and a salvage value of $6,500
Required
a. Using the straight-line method, compute the depreciation expense for 2013 and 2014.
b. Prepare the general journal entry to record the 2013 deprecation.
c. Assume the van was sold on January 1, 2016 for $21,000. Prepare the journal entry for the sale of the van in 2016.
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