CAB Company sold an old truck on May 8, 2022 for $22,000 cash. The original cost...
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CAB Company sold an old truck on May 8, 2022 for $22,000 cash. The original cost of the truck was $43,000. Accumulated depreciation on the truck at the time of disposal (sale) was $25,000. Instructions: a. Compute the net book value of the truck at the time of disposal. b. Compute the gain or loss on the disposal of the truck. c. Prepare journal entry to record the disposal (sale) of the truck on May 8, 2022. d. Assume that CAB Company sold the truck for $16,500 cash on May 8, 2022. Compute the gain or loss on the disposal of the truck. CAB Company sold an old truck on May 8, 2022 for $22,000 cash. The original cost of the truck was $43,000. Accumulated depreciation on the truck at the time of disposal (sale) was $25,000. Instructions: a. Compute the net book value of the truck at the time of disposal. b. Compute the gain or loss on the disposal of the truck. c. Prepare journal entry to record the disposal (sale) of the truck on May 8, 2022. d. Assume that CAB Company sold the truck for $16,500 cash on May 8, 2022. Compute the gain or loss on the disposal of the truck.
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Related Book For
Intermediate Accounting
ISBN: 978-1118742976
16th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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