1. On 1 January 2018, Leo Limited purchased a motor vehicle for $140,000. It had been depreciated using the straight-line method based on an estimated residual value of $20,000 and an estimated useful life of 5 years. On 31 July 2019, the motor vehicle was sold for $90,000 cash. The accounting year of Leo Limited ends on 31 December.

   Required:

   1. (a) Compute the depreciation expense of the motor vehicle for the year 2018.

   2. (b) Compute the depreciation expense of the motor vehicle for the year 2019 up to the date of disposal on 31 July 2019.

   3. (c) Prepare journal entry to record the disposal of the motor vehicle on 31 July 2019. (Note: Narration is not required.)