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Question: On July 1, 2013, Farm Fresh Industries purchased a specialized delivery truck for $227,000. At the time, Farm Fresh estimated the truck to have a useful life of eight years and a residual value of $35. On March 1, 2018, the truck was sold for $109,000. Farm Fresh uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service.

Required: 1. Prepare the journal entry to update depreciation in 2018.

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