Harrahs Corporation purchased a dump truck at the beginning of 2015 at a cost of $60,000. The truck had an estimated life of 5 years and an estimated salvage value of $5,000. On January 1, 2017, the company made major repairs of $3,000 to the truck that extended its life 2 more years. Starting with 2017, the truck has a remaining life of 5 years. The company uses the straight-line depreciation method.
If Harrahs sells the truck at the end of 2017 for $20,000 cash, how much gain or loss would be recognized?

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The Answer of Harrahs Corporation purchased a dump truck at the beginning of 2015 at a cost of $60,000. The truck had an estimated life of 5 years and an estimated salvage value of $5,000. On January 1, 2017, the company made major repairs of $3,000 to the truck that extended its life 2 more years. Starting with 2017, the truck has a remaining life of 5 years. The company uses the straight-line depreciation method.
If Harrahs sells the truck at the end of 2017 for $20,000 cash, how much gain or loss would be recognized?

Harrahs Corporation Purchased a Dump Truck at the Beginning of 2015