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 

33. True or False: Land is considered a noncurrent asset.

  • True
  • False

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