Vango,Inc.sold its van for $6,000 cash.The van's original cost was $40,000,and its accumulated depreciation was $32,000.When recording the sale,Vango should record a:

Question

Quizplus · Accepted Answer

Gain (loss)on disposal = Proceeds from sale − Book value at time of sale
Gain (loss)on disposal = Proceeds from sale − (Cost − Accumulated depreciation at time of sale)
= $6,000 − ($40,000 − $32,000)= ($2,000)

Vango,IncSold Its Van for $6,000 Cash