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Required information [The following information applies to the questions displayed below.] Movelt Corporation is the worlds

1 Record the sale of the truck that has an accumulated depreciation balance of $15,000 at the time of disposal 2 Record the s

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  • Requirement 1, with workings

Cost

Accumulated Depreciation

Book Value at time of sale

Sold for

Gain / Loss

Amount

[A]

[B]

[C = A - B]

[D]

ANSWERS

a

$37,000

$15,000

$22,000

$22,000

None

$0

b

$37,000

$13,000

$24,000

$22,000

Loss

$2,000

c

$37,000

$21,000

$16,000

$22,000

Gain

$6,000

  • Requirement 2

Accounts title

Debit

Credit

a)

Cash

$22,000

Accumulated Depreciation - Truck

$15,000

Truck

$37,000

b)

Cash

$22,000

Accumulated Depreciation - Truck

$13,000

Loss on disposal

$2,000

Truck

$37,000

c)

Cash

$22,000

Accumulated Depreciation - Truck

$21,000

   Gain on Disposal

$6,000

Truck

$37,000

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