please exam

2 18 MARKS QUESTION 1 On July 17, 2016, Mullins Company purchased a delivery truck for $45,000 cash. The truck had an estimated useful life of seven years and an estimated residual value of $3,000. Straight-line depreciation was used, applying the nearest whole month convention. Prepare the journal entries to record the disposition of the truck on September 1, 2020, under each of the following assumptions: (a) The truck and $45,000 cash were exchanged for a computer that had a fair market value of $60,000. (b) The truck and $40,000 cash were exchanged for a new delivery truck that had a list price of $65,000, its fair market value being unknown