P Companys fiscal year runs from January to December 31. P Co.acquires and installs
into operations a new truck on October 1, 2013 at a total cost of$360,000 and has an estimated useful life of four years and estimated salvage value of $40000.
K Company receives an offer for the truck for $140,000 at the end of the third year.
a. What factors should K Company consider in determining whether to sell or keep the truck?
b.Assume the truck is sold. Prepare the appropriate journal
entries showing sale of the truck under each depreciation method.