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Sale of depreciable assets

Sale of depreciable assets - sale of vehicles for $3,000...

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Sale of depreciable assets . If an asset is sold for cash, the amount of cash received is compared to  the asset's net book value to determine whether a gain or loss has occurred. Suppose the truck sells  for $7,000 when its net book value is $10,000, resulting in a loss of $3,000. The sale is recorded by  debiting accumulated depreciation-vehicles for $80,000, debiting cash for $7,000, debiting loss on 
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Unformatted text preview: sale of vehicles for $3,000, and crediting vehicles for $90,000. If the truck sells for $15,000 when its net book value is $10,000, a gain of $5,000 occurs. The sale is recorded by debiting accumulated depreciation-vehicles for $80,000, debiting cash for $15,000, crediting vehicles for $90,000, and crediting gain on sale of vehicles for $5,000....
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