Question 4.3 On 1 January, 2020 a limousine was purchased by Tido's luxury...

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Accounting

Question 4.3
On 1 January, 2020 a limousine was purchased by Tido's luxury hotel at an acquisition cost of 240,000. Tido depreciates the limousine using the straight line method over a four-year service life, and the limousine is expected to have a residual value of 40,000. The company's fiscal year ends on 31 December.
Prepare a journal entry to record the disposal of the limousine assuming it was scrapped on the 1st of January 2024 and that it was sold for 60,000 on the 1st of July 2023.
Prepare the journal entry for the sale of the limousine.
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