A truck that cost $36,000 and on which $30,000 of accumulated depreciation has been recorded was disposed of for $9,000 cash. The entry to record this event would include a
A) gain of $3,000.
B) loss of $3,000.
C) credit to the Truck account for $6,000.
D) credit to Accumulated Depreciation for $30,000.

Question

Quizplus · Accepted Answer

The book value of the truck is $6,000 ($36,000 cost - $30,000 accumulated depreciation). Selling it for $9,000 results in a gain of $3,000 ($9,000 - $6,000).

A Truck That Cost $36,000 and on Which $30,000 of Accumulated