The Rupert Company purchased a delivery van on January 1, Year 1 for $45,000. Rupert uses straight-line depreciation for the asset, which has a five year estimated useful life and a salvage value estimated at $9,000. The asset was sold on January 1, Year 3 for $33,300 cash. Indicate whether each of the following items related to Rupert Company is true or false.
_____ a) Annual depreciation for Rupert's equipment was $9,000.
_____ b) Accumulated depreciation on January 1, Year 3 was $14,400.
_____ c) Book value on January 1, Year 3 was $30,600.
_____ d) On the date of the sale, Rupert will record a loss of $2,400.
_____ e) A gain or loss on the sale of a plant asset is reported on the balance sheet.

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The Answer of The Rupert Company purchased a delivery van on January 1, Year 1 for $45,000. Rupert uses straight-line depreciation for the asset, which has a five year estimated useful life and a salvage value estimated at $9,000. The asset was sold on January 1, Year 3 for $33,300 cash. Indicate whether each of the following items related to Rupert Company is true or false.
_____ a) Annual depreciation for Rupert's equipment was $9,000.
_____ b) Accumulated depreciation on January 1, Year 3 was $14,400.
_____ c) Book value on January 1, Year 3 was $30,600.
_____ d) On the date of the sale, Rupert will record a loss of $2,400.
_____ e) A gain or loss on the sale of a plant asset is reported on the balance sheet.

The Rupert Company Purchased a Delivery Van on January 1