Dayton Ridge Co.purchased new trucks at the beginning of 2017 for $600,000.The trucks had an estimated life of four years and an estimated residual value of $50,000.Dayton Ridge uses straight-line depreciation.At the beginning of 2018,Dayton Ridge sold the trucks for $480,000 and purchased new trucks for $700,000.Determine the following amounts:
A. Book value of the trucks at the end of 2017 .

B. Gain (loss) on the sale of the trucks at the beginning of 2018. (Indicate the amount and whether again or loss.)

Question

Dayton Ridge Co.purchased new trucks at the beginning of 2017 for $600,000.The trucks had an estimated life of four years and an estimated residual value of $50,000.Dayton Ridge uses straight-line depreciation.At the beginning of 2018,Dayton Ridge sold the trucks for $480,000 and purchased new trucks for $700,000.Determine the following amounts:
 A. Book value of the trucks at the end of 2017 .

B. Gain (loss) on the sale of the trucks at the beginning of 2018. (Indicate the amount and whether again or loss.)

Quizplus · Accepted Answer

The Answer of Dayton Ridge Co.purchased new trucks at the beginning of 2017 for $600,000.The trucks had an estimated life of four years and an estimated residual value of $50,000.Dayton Ridge uses straight-line depreciation.At the beginning of 2018,Dayton Ridge sold the trucks for $480,000 and purchased new trucks for $700,000.Determine the following amounts:
 A. Book value of the trucks at the end of 2017 .

B. Gain (loss) on the sale of the trucks at the beginning of 2018. (Indicate the amount and whether again or loss.)