Answer Happy

Exercise 11-11 (Algo) Disposal of property, plant, and equipment; partial periods (L011-2) On July 1, 2016, Farm Fresh Industries purchased a specialized delivery truck for $238,600. At the time, Farm Fresh estimated the truck to have a useful life of eight years and a residual value of $37,000. On March 1, 2021, the truck was sold for $108,000. 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: 1. Prepare the journal entry to update depreciation in 2021. 2. Prepare the journal entry to record the sale of the truck. 3. Assuming that the truck was instead sold for $136,000, prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Prepare the journal entries to update depreciation in 2021 and record the sale of the truck. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction ist Journal entry worksheet < 1 2 >