Q2- On January 1, 2012, XYZ Co. purchased a car at a historical cost of $28,000. The car has been depreciated by the straight-line method using a 4-year useful life and a $4,000 salvage value (residual value). The company's financial year ends on December 31. Instructions Prepare the journal entry or entries to record the disposal (discard) of the car assuming that it was: (a) Retired and scrapped with no salvage value on January 1, 2016. (b) Sold for $5,000 on July 1, 2015