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Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
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Phoniex University
Oct-2001 - Nov-2016
E4-17A. 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 com pany provide the following information:
Delivery truck Accumulated depreciation
$38,000 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.
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