Computing Gain or Loss on Disposal

On July $1,$ one of Renee Company's delivery vans was crushed in an accident. On that date, the van's carrying value was $$4,000.$ On July $15,$ Renee received and recorded a $$1,120$ invoice for a new engine installed in May in the crushed van and another $$800$ invoice for various repairs done at the same time. In August, Renee received $$5,600$ from its insurance policy on the van; Renee plans to use those funds to replace the van. Compute the amount Renee reports as a gain or loss on disposal of the van in its income statement.

Note: Do not use a negative sign in your answer.

Gain on disposal of van

$

$0x$