Account for disposal of an asset. (LO 5)
Dave’s Delivery disposed of a delivery truck after using it 4 years. The records of the company provide the following information:
|
Delivery truck |
$38,000 |
|
Accumulated depreciation |
23,000 |
Calculate the gain or loss on the disposal of the truck for each of the following independent situations:
a. Dave’s Delivery sold the truck to Papa John’s Pizza for $12,000.
b. Dave’s Delivery sold the truck to Cornerstone Grocery for $15’000.
c. Dave’s Delivery sold the truck to John’s Plumbing for $16,000.
d. The truck was stolen out of Dave’s parking lot, and the company had no insurance.