4. Prince Albert Company, who has a year-end date of May 31, 2025, disposed of a truck on July 1, 2024. The asset had a cost of $49,883, an estimated residual value of $5,000, an estimated useful life of 8 years or 240,000 kms, and accumulated depreciation at the start of the fiscal year of disposal of $12,062. In the year of disposal, the company used the truck for 2,300 kms. On disposal, they received proceeds of $19,641. There were no changes to any estimates, and the asset was purchased at the start of the fiscal year two years previously. Answer the following questions about the disposal, calculating all answers to the nearest dollar (unit-of-production, calculate the rate per unit to three decimal places): a) Calculate the amount of depreciation for the truck in the final year of disposal (2025) using the Units-Of-Production method and provide the journal entry.

4. Prince Albert Company, who has a year-end date of May 31, 2025, disposed of a truck on July 1, 2024. The asset had a cost of $49,883, an estimated residual value of $5,000, an estimated useful life of 8 years or 240,000 kms, and accumulated depreciation at the start of the fiscal year of disposal of $12,062. In the year of disposal, the company used the truck for 2,300 kms. On disposal, they received proceeds of $19,641. There were no changes to any estimates, and the asset was purchased at the start of the fiscal year two years previously. Answer the following questions about the disposal, calculating all answers to the nearest dollar (unit-of-production, calculate the rate per unit to three decimal places): a) Calculate the amount of depreciation for the truck in the final year of disposal (2025) using the Units-Of-Production method and provide the journal entry.

Name: 4. Prince Albert Company, who has a year-end date of May 31, 2025, di
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Description: 4. Prince Albert Company, who has a year-end date of May 31, 2025, disposed of a truck on July 1,2024. The asset had a cost of $49,883, an estimated residual value of $5,000, an estimated usefullife of 8 years or 240,000 kms, and accumulated depreci

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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