Exercise 7-58 (Algorithmic) Disposal of Tangible Capital Asset Perfect Auto Rentals sold one of its cars on January 1, 2022. Perfect had acquired the car on January 1, 2020, for $13,500. At acquisition, Perfect assumed that the car would have an estimated life of 3 years and an estimated residual value of $3,000. Assume that Perfect has recorded straight-line depreciation expense for 2020 and 2021 Required: 1. Prepare the journal entry to record the sale of the car, assuming the car sold for (a) $6,500 cash, (b) $4,000 cash, and (c) $7,900 cash. The company recorded the car as equipment. For those boxes in which no entry is required, leave the box blank. a. b. (Record sale of car) (Record sale of car) (Record sale of car) 2. How should the gain or loss on the disposition (if any) be reported on the statement of earnings? The gain (or loss) on disposal would be shown on in the section.