Acquisition, Depreciation, and sale of an Asset On July 1, 2017, Philip Ward bought a used pickup truck at a cost of $5,300 for use in his business On the same day, Ward had the truck painted blue and white (his company's colors) at a cost of Ward estimates the life of the truck to be three years or 40,000 miles

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Acquisition, Depreciation, and sale of an Asset On July 1, 2017, Philip Ward bought a used pickup truck at a cost of $5,300 for use in his business On the same day, Ward had the truck painted blue and white (his company's colors) at a cost of Ward estimates the life of the truck to be three years or 40,000 miles. He further estimates that the truck will have a $450 scrap value at the end of its life, but that it will also cost him $50 to transfer the truck to the junkyard. Required: 1. Record the following Journal entries: a. July 1, 2017: Paid all bills pertaining to the truck. (No previous entries have been recorded concerning these bills.) b. December 31, 2017. The depreciation expense for the year, using the straight-line method. c. December 31, 2018: The depreciation expense for 2018, again using the straight-line method. d. January 2, 2019: Sold the truck for $2,600 cash. 2. What would the depreciation expense for 2017 have been if the truck had been driven 8,000 miles and the units-of-production method of depreciation had been used? 3. Interpretive Question: In part (1d), there is a loss of 650. Why did this loss occur?