Four years ago, on January 1, California Creamery bought a new delivery truck for $30,000. The company planned to use the truck for 7 years, and then sell it for $2,000. The company used the truck for 4 years and properly recorded straight-line depreciation each year. At the beginning of the 5th year, a change in emissions standards made the truck illegal in California. The company expects to sell the truck outside of California later this year for $6,000. The company should record a journal entry that includes a(n) . (

Dr Impairment Loss $8,000

Cr Truck $8,000

Explanation:

Preparation of journal entry

Based on the information given we told that the new delivery truck cost the amount of $30,000 in which the company intend to sell the delivery truck for the amount of $2,000 after using it for 7 years and secondly we were told that in the 5th year of using the truck the truck was considered as illegal in which the company is expected to sell the truck later this year for the amount of $6,000 which means journal entry should be recorded as:

Dr Impairment Loss $8,000

Cr Truck $8,000

($6,000+$2,000)

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!