Question

A truck costing $12,100, which has Accumulated Depreciation of $9,010, was sold for $2,010 cash. The entry to record this event would include a:
-loss of $1,080.

-gain of $1,080.

-credit to the Vehicles account for $3,090.

-credit to Accumulated Depreciation for $9,010.

Answer 1

Answer:

Loss of $1,080

Explanation:

The correct journal entries would be:

Dr     Accumulated Depreciation           9,010

Dr     Cash                                                2,010

Dr     Loss on sale                                    1,080

        Cr                Truck (Asset)                                    12,100

     

Thus, the correct answer is a loss of $1,080