The Duong, E9-38, P9-66, E10-29 - E 9-38 (p.435) Accounting...

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Unformatted text preview: E 9-38 (p.435) Accounting for the Disposal of Assets Using straight-line method, accumulated depreciation of the truck (after 4 years): Book value of the truck: $80,000 $40,000 = $40,000 1. Canlas Company sells the truck for $45,000 cash. Cash............................................................................... $45,000 Accumulated Depreciation, Truck................................. 40,000 Truck.................................................................. 80,000 Gain on Sale of Truck......................................... 5,000 Sold $80,000 truck at a gain of $5,000 2. Canlas Company sells the truck for $38,000 cash. Cash............................................................................... 38,000 Accumulated Depreciation, Truck................................. 40,000 Loss on Sale of Truck.................................................... 2,000 Truck.................................................................. 80,000 Sold $80,000 truck at a loss of $2,000 3. The old truck is wrecked and Canlas Company hauls it to the junkyard. Accumulated Depreciation, Truck................................. 40,000 Loss on Disposal of Truck.............................................Loss on Disposal of Truck....
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The Duong, E9-38, P9-66, E10-29 - E 9-38 (p.435) Accounting...

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