A truck costing $12,000 and on which $9,000 of accumulated depreciation has been recorded was disposed of for $2,000 cash.The entry to record this event would include a:
A)gain of $1,000.
B)loss of $1,000.
C)credit to the Truck account for $3,000.
D)credit to Accumulated depreciation for $9,000.

Question

Quizplus · Accepted Answer

Cost - Accumulated depreciation = Net book value $12,000 - $9,000 = $3,000 Selling Price - Net book value = Gain/loss on sale $2,000 - 3,000 = ($1,000)Loss.

A Truck Costing $12,000 and on Which $9,000 of Accumulated