On January 1,2014,a Company Buys a Truck for $42,000 Cash $$\begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline\end{array}$$

question 2

Essay

On January 1,2014,a company buys a truck for $42,000 cash.It has estimated residual value of $2,000,and an estimated life of 8 years,or 200,000 miles.Please provide the journal entry for the purchase of the truck.
$$\begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline\end{array}$$

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Definitions:

Variable Costing

A costing technique that only assigns variable production costs to inventory, helping managers understand the impact of production levels on total costs.

Net Operating Income

The income produced through a firm's regular commercial activities, not including taxes and interest.

Variable Costing

A record-keeping system in accounting that inputs only variable production-related expenses (direct materials, direct labor, and variable manufacturing overhead) into the cost evaluation of goods.

Unit Product Cost

The total cost (both variable and fixed) associated with producing a single unit of product, calculated by dividing the total production costs by the number of units produced.