Scamp Ltd purchased a truck on January 1, 2018, at a cash cost of $42,400. The...

 

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Scamp Ltd purchased a truck on January 1, 2018, at a cash cost of $42,400. The estimated residual value was S1,600 and the estimated useful life 4 years. The company uses straight-line depreciation computed monthly. On July 1, 2021, the company sold the truck for $6,500 cash. A. What was the depreciation expense amount per month? B. What was the amount of accumulated depreciation at July 1, 2021? C. Give the required journal entries on the date of disposal, July 1, 2021. (Assume no 2021 depreciation had yet been recorded). Scamp Ltd purchased a truck on January 1, 2018, at a cash cost of $42,400. The estimated residual value was S1,600 and the estimated useful life 4 years. The company uses straight-line depreciation computed monthly. On July 1, 2021, the company sold the truck for $6,500 cash. A. What was the depreciation expense amount per month? B. What was the amount of accumulated depreciation at July 1, 2021? C. Give the required journal entries on the date of disposal, July 1, 2021. (Assume no 2021 depreciation had yet been recorded).

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a Calculation of depreciation amount per month The company us... View the full answer