A truck that cost $250 000 and had accumulated depreciation of $180 000 was sold for $50 000 cash in June 2012.This transaction will:

Name: A truck that cost $250 000 and had accumulated depreciation of $180 000 was sold for $50 000 cash in June 2012.This transaction will:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The sale of the truck decreases assets because the truck is removed from the balance sheet, and the cash received is less than the book value (cost minus accumulated depreciation), resulting in a loss, which decreases profits.

A Truck That Cost $250 000 and Had Accumulated Depreciation