A truck costing $32,000 was destroyed when its engine caught fire.At the date of the fire, the accumulated depreciation on the truck was $16,000.An insurance cheque for $37,000 was received based on the replacement cost of the truck.The entry to record the insurance proceeds and the disposition of the truck will include a
A)gain on disposal of $5,000.
B)credit to the Truck account for $16,000.
C)credit to the Accumulated Depreciation account for $16,000.
D)gain on disposal of $21,000.

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The Answer of A truck costing $32,000 was destroyed when its engine caught fire.At the date of the fire, the accumulated depreciation on the truck was $16,000.An insurance cheque for $37,000 was received based on the replacement cost of the truck.The entry to record the insurance proceeds and the disposition of the truck will include a
A)gain on disposal of $5,000.
B)credit to the Truck account for $16,000.
C)credit to the Accumulated Depreciation account for $16,000.
D)gain on disposal of $21,000.

A Truck Costing $32,000 Was Destroyed When Its Engine Caught