Fortin Excavating purchased a used dump truck for $110,000 on January 1, 2018. The company has...

 

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Fortin Excavating purchased a used dump truck for $110,000 on January 1, 2018. The company has depreciated the dump truck using the straight-line method over its estimated 10-year life with a $4,500 residual value. Fortin sold the dump truck on January 1, 2021, for $90,000. Total accumulated depreciation on the dump truck on the date of sale was $31,650. What gain or loss should be recorded on the sale? A. A loss of $11,650 B. A gain of $20,000 C. A loss of $20,000 D. A gain of $11,650 Fortin Excavating purchased a used dump truck for $110,000 on January 1, 2018. The company has depreciated the dump truck using the straight-line method over its estimated 10-year life with a $4,500 residual value. Fortin sold the dump truck on January 1, 2021, for $90,000. Total accumulated depreciation on the dump truck on the date of sale was $31,650. What gain or loss should be recorded on the sale? A. A loss of $11,650 B. A gain of $20,000 C. A loss of $20,000 D. A gain of $11,650

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Cost of Dump truck 110000 Less Accumulate... View the full answer