Question

Required information [The following information applies to the questions displayed below.] Movelt Corporation is the world's leading express-distribution company. In addition to its 643 aircraft, the company has more than 57,000 ground vehicles that pick up and deliver packages. Assume that Movelt sold a delivery truck for $26,000. Movelt had originally purchased the truck for $43,000 and had recorded depreciation for three years. 2. Using the following structure, indicate the effects (accounts, amounts, and + for increase and - for decrease) of the disposal of the truck, assuming that Accumulated Depreciation was (a) $17,000, (b) $12,000, and (c) $19,000. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) Assets Liabilities Stockholders' Equity (a) I leal

Answer 1

Accounting equation

	Assets		=	Liabilities		+	Stockholder's equity
a	cash	26000
	Equipment	-43000
	Accumulated depreciation-equipment	-17000
b	Cash	26000
	Equipment	-43000					Loss on sale of equipment	-5000
	Accumulated depreciation-equipment	-12000
c	Cash	26000					Gain on sale of equipment	2000
	Equipment	-43000
	Accumulated depreciation-equipment	-19000