31. Sanjay has a food truck, “Pakora”, that specializes in his culture’s cuisine. He is leasing the truck through a capital lease. His original cost was $35,500 and the expected useful life of this vehicle is 8 years. Calculate his annual depreciation.
What would the book value be of Sanjay’s food truck after 1 year? (Format your answer as $xx,xxx.xx)
$31,062.50
32. For a capital lease, you must include the following journal entries except:
- One entry to record the monthly payment
- One entry to record the initial payment
- One entry to record the lease
- One entry to record the interest alone