1 Prepare a depreciation schedule for the assets in the following transactions using the straight line method of depreciation:
A: Flash Enterprises purchased 3 new delivery trucks at a cost of $45,000 each. Each truck as an estimated useful life of 5 years.
B: Flash neede a new forklift to be used in warehouse operations at a cost of $12,500. The old forklift was traded in for $1,500.
2 Analyze the results.
A: Flash has an opportunity to sell one of the trucks fro Question 1(a) above after 3 years for a price of $15,000. Should they accept the offer? Why or Why Not?
B: The used forklift from question 1(b) above had an original cost of $10,000 and a book value of 500 at the time of trade in. Calculate any gain or loss an show the appropriate journal entry.