Question

Required information E9-9 Demonstrating the Effect of Book Value on Reporting an Asset Disposal [LO 9-5) [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 Moveit sold a delivery truck for $16.000. Moveit had originally purchased the truck for $27,000 and had recorded depreciation for three years. E9-9 Part 2 2. Using the following structure, indicate the effects accounts, amounts, and for increase and for decrease) or the disposal of the truck, assuming that Accumulated Depreciation was (a) $11.000. (D) $8,000, and (0) $13,000. (Enter any decreases to Assets, Llabilities, or Stockholders' Equity with a minus sign.) Assets Liabilities Stockholders Equity

Answer 1

Liabilities Stockholders' Equity + + = = + + (b) + Loss on Disposal $ 3,000 Assets Cash Truck Accumulated Depreciation Cash Truck Accumulated Depreciation Cash Truck Accumulated Depreciation $ $ $ $ $ $ | $ $ $ 16,000 27,000 -11,000 16,000 -27,000 -8,000 16,000 27,000 -13,000 = + + (C) + + Gain on Disposal $ 2,000 = = + +