On January 1, 2017, Panda Company purchased a delivery truck for $105,000. They estimated the useful life of the truck to be 6 years, and the salvage value to be $19,500. On July 1, 2022, they sold the truck for a loss of $2,700.
Assuming the company uses straight line depreciation, calculate the selling price of the truck.

Question

Quizplus · Accepted Answer

Accumulated depreciation = $105,000 - $19,500 / 6 = $14,250 x 5.5 years = $78,375 The journal entry to record the sale is: To record the sale of delivery truck. 11ee7640_e1cc_4906_90da_6bb31e28761a_TBCB1007_00 X = $105,000 - $78,375 - $2,700 X = $23,925 Cash/Selling price

On January 1, 2017, Panda Company Purchased a Delivery Truck