Question - Chamber Company purchased a truck on January 1 20A, 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 amortization computed monthly. On July 1, 20D the company sold the truck for $1,700 cash.
A. What was the amortization expense amount per month?
B. what was the amount of accumulated amortization at July 1, 20D?
C. Give the required journal entries on the date of disposal July 1, 20D. (Assume no 20D amortization had yet been recorded).