On January 2, 1996, Blake Company purchased a delivery truck for \(\$ 78,750\) cash. The truck has an estimated useful life of six years and an estimated salvage value of \(\$ 6,750\). The straightline method of depreciation is being used.

a. Prepare a schedule showing the computation of the book value of the truck on December 31, 1998.

b. Assume the truck is to be disposed of on July 1, 1999. Prepare the journal entry to record depreciation for the six months ended June 30, 1999.

c. Prepare the journal entries to record the disposal of the truck on July 1, 1999, under each of the following unrelated assumptions:

1. The truck was sold for \(\$ 26,250\) cash.

2. The truck was sold for \(\$ 48,000\) cash.

3. The truck was retired from service, and it is expected that \(\$ 20,625\) will be received from the sale of salvaged materials.

4. The truck and \(\$ 60,000\) cash were exchanged for office equipment that had a cash price of \(\$ 105,000\).

5. The truck and \(\$ 67,500\) cash were exchanged for a new delivery truck that had a cash price of \(\$ 112,500\).

6. The truck was completely destroyed in an accident. Cash of \(\$ 25,500\) is expected to be recovered from the insurance company.