a truck was acquired on july 1, 2023, for $189,000. the truck had a six-year useful life and an estimated salvage value of $21,000. the straight-line method of depreciation was used. on january 1, 2026, the truck was overhauled for $17,500, which extended the useful life of the truck for an additional two years beyond that originally estimated (salvage value is still estimated at $21,000). in computing depreciation for annual adjustment purposes, expense is calculated for each month the asset is owned.

Instructions

Prepare the appropriate entries for January 1, 2023 and December 31, 2023.