Problem 9-11A Partial year's depreciation; revising depreciation rates 9 L01, 0 2, 9 4
CHECK FIGURE: Dec. 31, 2024 Deprec. Exp. = $21,160
Never Late Ltd. completed the following transactions involving delivery trucks:
Mar. 26 2023 Paid cash for a new delivery truck, $92,000 plus $4,200 of freight costs. The truck was estimated to have a five-year life and a
$10,000 trade-in value.
Dec. 31 2023 Recorded straight-line depreciation on the truck to the nearest whole month.
Dec. 31 2024 Recorded straight-line depreciation on the truck to the nearest whole month. However, due to new information obtained early
in January, the original estimated useful life of the truck was changed from five years to four years, and the original estimated trade-in value was increased to $14,500.