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On January 1, 2014, Big Rock Brewery purchased a van for $41,000. Big Rock expects the van to have a useful life of four year

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Answer #1

a) Carrying amount = Cost - Accumulated depreciation = 41000-(41000-6000)/4*4 = 6000

b) Journal entry

Date account and explanation Debit Credit
Cash 20000
Accumulated depreciation-Van 35000
Gain on sale of Van 14000
Van 41000
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