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  3. 1. on january 1, 2011, high class taxi purchased a

1. On January 1, 2011, High Class Taxi purchased a taxi-car for $78,000. The vehicle...

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Accounting

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1. On January 1, 2011, High Class Taxi purchased a taxi-car for $78,000. The vehicle is being amortized by the straight-line method using a four-year service life and a $4,000 residual value. The company's fiscal year ends on December 31. (11 marks) Remember to show your calculations Prepare the journal entry or entries to record the disposal of the taxi-car, assuming that it is: (a) retired on January 1, 2014 (2) (b) sold for $15,000 on July 1, 2014 (5) (c) traded in on a new taxi-car on January 1, 2014, for a trade-in allowance of $25,000 and cash of $52,000. The fair value of the old vehicle on January 1, 2014, was $20,000. (4)

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