FedEx is the worlds leading express-distribution company. In addition to the worlds largest fleet of all-cargo aircraft,

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FedEx is the world’s leading express-distribution company. In addition to the world’s largest fleet of all-cargo aircraft, the company has more than 688 aircraft and 50,000 vehicles and trailers that pick up and deliver packages. Assume that FedEx sold a delivery truck that had been used in the business for three years. The records of the company reflected the following:
Delivery truck cost ..... $35,000
Accumulated depreciation . 23,000

Required:
1. Give the journal entry for the disposal of the truck, assuming that the truck sold for
a. $12,000 cash
b. $12,400 cash
c. $11,500 cash
2. Based on the three preceding situations, explain the effects of the disposal of an asset.

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Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-0078025556

8th edition

Authors: Robert Libby, Patricia Libby, Daniel Short

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