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A truck was acquired on July 1, 2004 at a cost of $216,000.

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A truck was acquired on July 1, 2004 at a cost of $216,000. The truck had a 6 year useful life and an estimated salvage value of $24,000. The straight line method of depreciation was used. On January 1, 2007 the truck was overhauled at a cost of $20,000 which extended the useful life of the truck by two years beyond the original estimated useful life. The salvage value was estimated to then be $22,000.

Prepare journal entries for January 2007 and December 2007.

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A truck was acquired on July 1, 2004 at a cost of $216,000. The truck had a 6 year useful life and an estimated salvage value of $24,000. The straight line method of depreciation was used. On January 1, 2007 the truck was overhauled at a cost of $20,000 which extended the useful life of the truck by two years beyond the original estimated useful ...

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