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E9-11 (Algo) Demonstrating the Effect of Book Value on Reporting an Asset Disposal [LO 9-5]

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Liang and Cruz Deliveries is the worlds leading express-distribution company. In addition to its 643 aircraft, the company has more than 57,000 ground vehicles that pick up and deliver packages. Assume that Liang and Cruz sold a delivery truck for $10,000. Liang and Cruz had originally purchased the vehicle and recorded it in the Truck account for $16,000 and had recorded depreciation for three years.

E9-11 (Algo) Part 1

Required:

Calculate the amount of gain or loss on disposal, assuming that Accumulated DepreciationTruck was (a) $6,000, (b) $5,000, and (c) $10,000. (Select "None" if there is no Gain or Loss.)