Answer:
Gain on disposal of $78,000
Explanation:
The computation of the disposition of the machine is shown below:e
= accumulated depreciation + insurance received based on the replacement cost of the machine - Destroyed cost of the machine
= $60,000 + $150,000 - $132,000
= $78,000
Since the machine was replaced so accumulated depreciation should be included and the destroyed cost of the machine should be deducted.
The $78,000 record gain disposal of the machine
Based on the cost of the truck, the residual value, and the useful life, the depreciation expense for the first year would be $1,500.
<h3>What is the depreciation expense?</h3>
This can be found by the formula:
= Miles driven in first year / Useful life x (Cost - residual value)
Solving gives:
= 15,000 / 70,000 x (8,000 - 1,000)
= $1,500
Find out more on depreciation at brainly.com/question/1287985.
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