Question

D-Signs calculates depreciation expense using the units-of-activity method for a delivery van that originally cost $15,500. The van had an estimate of 100,000 miles of use, with a $2,000 residual value. As of the beginning of 20Y5, the van has been driven 92,000 miles. Before disposing of the asset on March 15, 20Y5, the company drives the van an additional 2,000 miles. Prepare the journal entries to record the depreciation for 20Y5 and the disposal of the asset.

Answer 1

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