PLease help me: I need to prepare journal entries necessary to record the depreciation, acquisition and or disposal on the following: XYZ Co. traded in one of it's trucks for a newer truck. The original cost of the old truck was $6400 and was depreciated using the straight-line method. The old truck was acquired on 7/1/96 and had an expected life of 4 years. The new truck had a market value of 8700 but the dealer sold it to them for 7300 in cash. The new truck, which was acquired on 3/31/99 was expected to have an estimated life of 4 years and management felt it should be depreciated over 100,000 miles.
