Mason Delivery Services purchased a truck with a cost of $40,000, salvage value of $5,000 and useful life of 5 years. Required: For each independent situation, calculate the gain or loss on sale (disposal) and record the entry. Note, you will need to determine the accumulated depreciation at the end of year 3. a. At the end of year 3, the truck was sold for $22,000. Calculation Account Dr. Cr. b. At the end of year 3, the truck was sold for $17,00o. Calculation Account Dr. Cr. c. At the end of year 3, the truck is totaled in an accident. Calculation Account Dr. Cr.

Mason Delivery Services purchased a truck with a cost of $40,000, salvage value of $5,000 and useful life of 5 years. Required: For each independent situation, calculate the gain or loss on sale (disposal) and record the entry. Note, you will need to determine the accumulated depreciation at the end of year 3. a. At the end of year 3, the truck was sold for $22,000. Calculation Account Dr. Cr. b. At the end of year 3, the truck was sold for $17,00o. Calculation Account Dr. Cr. c. At the end of year 3, the truck is totaled in an accident. Calculation Account Dr. Cr.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4EA: Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is...

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