Chamber Company purchased a truck on January 1, 20X1, at a cash cost of $10,600. The estimated residual value was $400 and the estimated useful life 4 years. The company uses straight-line depreciation computed monthly. On July 1, 20X4, the company sold the truck for $1,700 cash.
A. What was the depreciation expense amount per month?
B. What was the amount of accumulated depreciation at July 1, 20X4?
C. Give the required journal entries on the date of disposal, July 1, 20X4. (Assume no 20X4 depreciation had yet been recorded).

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The Answer of Chamber Company purchased a truck on January 1, 20X1, at a cash cost of $10,600. The estimated residual value was $400 and the estimated useful life 4 years. The company uses straight-line depreciation computed monthly. On July 1, 20X4, the company sold the truck for $1,700 cash.
A. What was the depreciation expense amount per month?
B. What was the amount of accumulated depreciation at July 1, 20X4?
C. Give the required journal entries on the date of disposal, July 1, 20X4. (Assume no 20X4 depreciation had yet been recorded).

Chamber Company Purchased a Truck on January 1, 20X1, at a Cash