Problem 4 On April 1 of the current year, a company disposed of an automobile that had cost $20,000. The auto had a salvage value of $2,000, and a useful life of 5 years. The accounting records showed accumulated depreciation for this automobile of $8,100 as of April 1 of the current year. The asset was discarded after an accident, and $10,500 cash was received from an insurance claim. Required: Prepare the journal entry to record the disposal of the automobile Date Accounts Debit Credit