In 2014 January, Horaces Hardware bought a truck to make deliveries to customers. Cost of the truck was $2 400 000. In July of year 3, the truck was sold for $1 500 000. An annual allowance of 20 percent is available.

A. Draft a capital allowance computation schedule for the truck.

B. Determine if there is a balancing charge or balancing allowance after disposal. Show all workings.

C. If the truck had been sold for $1 000 000, would there have been a balancing charge or balancing allowance? Show all workings.

D. What if the truck had been sold for $2 600 000? Would there have been a balancing charge or balancing allowance?