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On July $1,2023,$ Waterway's Greenhouse purchased a new delivery truck for $$98,000.$ She paid $$20,000$ cash and signed a promissory

note for the remainder. Waterway estimates that the delivery truck will have a five$-$year useful life, or $150,000$ kilometres and a

residual value of $$8,000.$ Waterway's Greenhouse has a December $31$ year end.

Calculate the gain or loss on disposal for the following three independent situations:

Waterway sold the truck for $$37,300$ on January $1,2027.$ Use the straight$-$line method.

on disposal $ Question Part Score

Waterway sold the truck for $$31,250$ on January $1,2027.$ Use the straight$-$line method.

on disposal $

Question Part Score

Waterway sold the truck for $$24,600$ on July $1,2027.$ Use the straight$-$line method.

on disposal $ Waterway sold the truck for $$24,600$ on July $1,2027.$

Using the straight$-$line method, prepare the journal entries for the above situation. $($Credit account titles are automatically indented

when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.

List all debit entries before credit entries.$)$

Date

Account Titles

Debit

Credit

July $1_r$

$2027$

$($To record depreciation expense on vehicle$)$

July $1_f$

$2027$

$($To record sale of vehicle$)$On July $1,2023,$ Waterway's Greenhouse purchased a new delivery truck for $$98,000.$ She paid $$20,000$ cash and signed a promissory note for the remainder. Waterway estimates that the delivery truck will have a five$-$year useful life, or $150,000$ kilometres and a residual value of $$8,000.$ Waterway's Greenhouse has a December $31$ year end.

Calculate the gain or loss on disposal for the following three independent situations