requirement 1. record the journal entry for depreciation expense in 2025. (record debits first, then…

requirement 1. record the journal entry for depreciation expense in 2025. (record debits first, then credits. select the explanation on the last line of the journal entry table.)\nrequirement 2. determine road trucking corporations cost of the new truck\nthe cost of the new truck =\nfacts\nwhen acquired in 2022, the rig cost $380,000 and was expected to remain in service for 10 years or 1,000,000 miles. estimated residual value was $120,000. the truck was driven 79,000 miles in 2022, 110,000 miles in 2023, and 158,000 miles in 2024. after 38,000 miles, on march 15, 2025, the company traded in the mack truck for a less expensive freightliner. road trucking corporation also paid cash of $27,000. fair value of the mack truck was equal to its net book value on the date of the trade

requirement 1. record the journal entry for depreciation expense in 2025. (record debits first, then credits. select the explanation on the last line of the journal entry table.)\nrequirement 2. determine road trucking corporations cost of the new truck\nthe cost of the new truck =\nfacts\nwhen acquired in 2022, the rig cost $380,000 and was expected to remain in service for 10 years or 1,000,000 miles. estimated residual value was $120,000. the truck was driven 79,000 miles in 2022, 110,000 miles in 2023, and 158,000 miles in 2024. after 38,000 miles, on march 15, 2025, the company traded in the mack truck for a less expensive freightliner. road trucking corporation also paid cash of $27,000. fair value of the mack truck was equal to its net book value on the date of the trade

Answer

Explanation:

Step1: Calculate depreciation per mile

Depreciation per mile = ($380,000 - $120,000)/1,000,000 = $0.26 per mile

Step2: Calculate total miles driven

Total miles driven = 79,000 + 110,000 + 158,000 + 38,000 = 385,000 miles

Step3: Calculate accumulated depreciation

Accumulated depreciation = 385,000 × $0.26 = $100,100

Step4: Calculate net book value of old truck

Net book value = $380,000 - $100,100 = $279,900

Step5: Calculate cost of new truck

Cost of new truck = Net book value of old truck + Cash paid = $279,900 + $27,000 = $306,900

Answer:

$306,900