A truck that cost Owle Company $108,000, was estimated to have a salvage value of $24,000, and was expected to last 10 years.
At the end of 5 years of use (assume straight line depreciation), it was sold for $90,000, the journal entry to record the sale will involve a:

Question

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The journal entry to record the sale is: Cash 90,000 Accumulated depreciation-Delivery Truck* 42,000 Delivery Truck 108,000 Gain on sale of plant assets 24,000 To record the sale of delivery truck for $90,000. _*($₁₀₈_{,000 - $}₂₄_{,000) / 10 = $}_8,4_{00 x 5 years = $}₄₂_,000

A Truck That Cost Owle Company $108,000, Was Estimated to Have