Exercise $11-11($Algo$)$ Disposal of property, plant, and equipment; partial periods $[$LO$11-2]$

On July $1,2019,$ Farm Fresh Industries purchased a specialized delivery truck for $$328,000.$ At the time, Farm Fresh

estimated the truck to have a useful life of eight years and a residual value of $$40,000.$ On March $1,2024,$ the truck was

sold for $$156,000.$ Farm Fresh uses the straight$-$line depreciation method for all of its plant and equipment. Partial$-$year

depreciation is calculated based on the number of months the asset is in service.

Required:

Prepare the journal entry to update depreciation in $2024.$

Prepare the journal entry to record the sale of the truck.

Assuming that the truck was instead sold for $$167,000,$ prepare the journal entry to record the sale.

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