Computing the gain or loss on sale of equipment. Fedup Express acquired a delivery truck on January

Question:

Computing the gain or loss on sale of equipment. Fedup Express acquired a delivery truck on January 1, 2004, for $48,000. It estimated that the truck would have a six-year useful life and $6,000 salvage value. Fedup Express uses the straight-line depreciation method. On July 1, 2008, Fedup Express sells the truck for $14,000. Give the journal entries that Fedup Express makes on July 1, 2008, to recognize depreciation for 2008 and the sale of the truck.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...