Question
Beckworth Company purchased a truck on January 1, 2022, at a cash cost of $17,400. The estimated residual value was $2,100 and the estimated useful
Beckworth Company purchased a truck on January 1, 2022, at a cash cost of $17,400. The estimated residual value was $2,100 and the estimated useful life 4 years. The company uses straight-line depreciation computed monthly. On July 1, 2025, the company sold the truck for $6,000 cash.
Required:
A. What was the depreciation expense amount per month?
Note: Round your answer to 2 decimal places.
B. Give the required journal entries on the date of disposal, July 1, 2025
Prepare the required journal entries on the date of disposal, July 1, 2025. (Assume no 2025 depreciation had yet been recorded)
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