A trucking company sold its fleet of trucks for $55,000.The trucks originally cost $1,410,000 and had Accumulated Depreciation of $1,269,000 recorded through the date of disposal.What gain or loss did the trucking company record when it sold the fleet of trucks?

Question

Quizplus · Accepted Answer

Book value = $1,410,000 − $1,269,000 = $141,000
Gain (loss)on disposal = Proceeds − Book Value
= $55,000 − $141,000 = ($86,000)

A Trucking Company Sold Its Fleet of Trucks for $55,000