a$)$

b$)$ Calculate the gain$/$loss on disposal of the truck and provide the journal entry.

Prince Albert Company, who has a year$-$end date of May $31,2025,$ disposed of a truck on July $1,$

$2024.$ The asset had a cost of $$49,883,$ an estimated residual value of $$5,000,$ an estimated useful

life of $8$ years or $240,000$ kms$,$ and accumulated depreciation at the start of the fiscal year of

disposal of $$12,062.$ In the year of disposal, the company used the truck for $2,300$ kms$.$ On disposal,

they received proceeds of $$19,641.$ There were no changes to any estimates, and the asset was

purchased at the start of the fiscal year two years previously. Answer the following questions about

the disposal, calculating all answers to the nearest dollar $($unit$-$of$-$production, calculate the rate per

unit to three decimal places$)$: $(10$ marks$)$

Calculate the amount of depreciation for the truck in the final year of disposal $(2025)$ using

the Units$-$Of$-$Production method and provide the journal entry.