2 On January 2, 2016, Flake Company purchased a truck for $140,000 cash. That truck has an estimated useful life of seven years and an estimated salvage value of $12,000. The straight-line method of depreciation is being used. Required: A. Prepare a schedule showing the calculation of the book value of the truck on December 31, 2019. B. Assume the truck is to be disposed of on May 1, 2020. Prepare the journal entry to record the depreciation for the four months ended April 30, 2020. C. Assuming that the depreciation for 2020 has been brought up to date as in Part B above, prepare the journal entries to record the disposal of the truck on May 1, 2020, under each of the following unrelated assumptions: 1. The truck was sold for $42,000 cash. 2. The truck was sold for $92,000 cash. The truck was retired from service, and it is expected $39.000 . will be received from the sale of the salvaged materials. The truck and $110,000 cash were exchanged for office 4. equipment that had a cash price of $200,000. The exchange had commercial substance. The truck and $130,000 cash were exchanged for a new truck 5. that had a cash price of $215,000. The exchange has no commercial substance. The truck was completely destroyed in an accident Cash of 6. $49.000 is expected to be received from the insurance 3. company X Cut 02 Copy Paste Calibri 11 ab Wrap Text General NO AA A. BIU- - Format Painter Merge & Center - $. % Condition Formatting Clipboard B Font Alignment Number E33 fo D F G H A A. 6 7 B Calculation of book value as of Dec. 31, 2019: Original cost Accumulated depreciation through 12-31-19 Book value at 12-31-19 8 9 10 11 B. Depreciation for the first 4 months of 2020: Debit Credit 12 13 14 15 16 C. #1 17 18 19 20 21 22 C. #2 23 24 25 26 Sheet1 My Homework Chapter 11, -2 (3) (Compatibility Mode] - Exc View Help Tell me what you want to do File Home Insert Draw Page Layout Formulas Data Review & Cut C Copy Calibri 11 -AA General Paste 26 Wrap Text Merge & Center - Format Painter BIU- A.A. $ . % Condi Forma Clipboard Font Alignment Number E33 A B C D F G H 28 C. #3 29 30 31 32 33 34 35 36 37 38 39 40 41 C. #4 42 C. #5 43 44 45 46 47 C. #6 48 49 Sheet1