Question

A trucking company sold its fleet of trucks for $56,300. The trucks originally cost $1,471,000 and had Accumulated Depreciation of $1,282,000 recorded through the date of disposal. What gain or loss did the trucking company record when it sold the fleet of trucks

Answer 1

Answer:

$132,700

Explanation:

The computation of the gain or loss in case of sale of fleet of trucks is shown below:

But before that we have to find that written down value which is

WDV of Trucks is

= Original Cost - Accumulated Depreciation

= $1,471,000 - $1,282,000

= $189,000

And, the Sale value is $56,300

So, the loss is

= $189,000 - $56,300

= $132,700