A truck costing $35,000 was destroyed when its engine caught fire. At the date of the fire, the accumulated depreciation on the truck was $14,000. An insurance check for $40,000 was received based on the replacement cost of the truck. The entry to record the insurance proceeds and the disposition of the truck will include a
a. Gain on Disposal of $5,000.
b. credit to the Truck account of $21,000.
c. credit to the Accumulated Depreciation account for $14,000.
d. Gain on Disposal of $19,000.
2007-05-01 12:19:17 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
The answer is d.
The gain on disposal is $40,000-21,000 (the net book value of the truck).
2007-05-01 12:25:08 · answer #1 · answered by Kathryn 6 · 1⤊ 1⤋
that's not an accounting question,, it's your home work question,,
2007-05-01 15:21:19 · answer #2 · answered by Jo Blo 6 · 0⤊ 0⤋
D.
2007-05-01 20:40:21 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 1⤋