CAB Company sold an old truck on May 8, 2022 for $22,000 cash. The original cost...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
CAB Company sold an old truck on May 8, 2022 for $22,000 cash. The original cost of the truck was $43,000. Accumulated depreciation on the truck at the time of disposal (sale) was $25,000. Instructions: a. Compute the net book value of the truck at the time of disposal. b. Compute the gain or loss on the disposal of the truck. c. Prepare journal entry to record the disposal (sale) of the truck on May 8, 2022. d. Assume that CAB Company sold the truck for $16,500 cash on May 8, 2022. Compute the gain or loss on the disposal of the truck. CAB Company sold an old truck on May 8, 2022 for $22,000 cash. The original cost of the truck was $43,000. Accumulated depreciation on the truck at the time of disposal (sale) was $25,000. Instructions: a. Compute the net book value of the truck at the time of disposal. b. Compute the gain or loss on the disposal of the truck. c. Prepare journal entry to record the disposal (sale) of the truck on May 8, 2022. d. Assume that CAB Company sold the truck for $16,500 cash on May 8, 2022. Compute the gain or loss on the disposal of the truck.
Expert Answer:
Answer rating: 100% (QA)
Based on the information provided the journal entries to record membersh... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1118742976
16th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
On October 1, 2011, the company has a building with a cost of $375,000 and accumulated depreciation of $225,000. The company commits to a plan to sell the building by February 1, 2012. On October 1,...
-
On October 1, 2008, the company has a building with a cost of $200,000 and accumulated depreciation of $155,000. The company commits to a plan to sell the building by February 1, 2009. On October 1,...
-
On October 1, 2013, the company has a building with a cost of $375,000 and accumulated depreciation of $225,000. The company commits to a plan to sell the building by February 1, 2014. On October 1,...
-
1. By integrating Planck's codiation law over all wave hengths power radiated per square meter of a is given by: R(T) = (55) T" proof that the cavity's surface note: x= he AKT 2 xdx 3 % ex-1
-
Using the colon symbol, create a row vector (assign it to a variable named Fives) with five elements that are all 5.
-
How does double buffering improve block access time?
-
\(40+12 \times 17\) Perform the indicated calculation.
-
McGill and Smyth have capital balances on January 1 of $50,000 and $40,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $22,000 for McGill and $13,000...
-
Question 16 Write a quadratic function with leading croefficient 1 that has roots of 18 and P. 2 answers
-
Suppose availability and purchase costs for V8 short blocks at Juarez and New Orleans are the same as in problem #2 (without tariffs). However, suppose that HP does not pay shipping from Juarez or...
-
OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship will cost $499 million and will operate for 20 years. Open Seas expects annual cash flows from operating the ship to be $70.5...
-
Solve the Following Inequalities, Write the Solution Set in Interval Notation a) (x-4) (5x-8) > 0 (x-4)(5x8) b) <0 x-15 x-4 c). <2 x-15
-
An ore sample weighing 8.60 kg is found to contain 1.40 kg of copper. a) Calculate the percent copper in the ore. Problem-solving: 1.40 KgCu/8.6 Kg Ore times 100 = 16.279 16 % Cu b) write the percent...
-
Explain to the nurse manager why this seemingly easy change was met with such resistance. Is there anything the nurse manager can do at this stage to address the issue? Explain. Make a recommendation...
-
On October 1, Jerry's Carpet Service borrows $250,000 from First National Bank on a 3-month, $250,000, 8% note. 4. What entry must Jerry's Carpet Service make on December 31st before financial...
-
-1 2 - 2 -5 2 1 -2 2 If 1 -1 2 2 = 1, -3-5 -1 1 - -1 = 3, 2 -32 = 1, 2 -3 -2 2 1 -3 2 1 2 1 -5-3= -2. 1 -2-3 Find the solution of the following system of linear equations by Cramer's rule. -21 +2x2...
-
Two parallel plates 25 cm by 35 cm receive a charge of 0.2 ?Cfrom a 250V supply. Calculate (a) the electric flux and (b) theelectric flux density. For the circuit of Fig. 3.29 calculate (a)the p.d...
-
The Higher the time period of the financial security the higher the. ............... risk. O a. Maturity O b. Default and Maturity Oc. Default O d. Liquidity
-
On June 3, 2017, Hunt Company sold to Ann Mount merchandise having a sales price of $8,000 (cost $6,000) with terms of n/60, f.o.b. shipping point. Hunt estimates that merchandise with a sales value...
-
Geraths Windows manufactures and sells custom storm windows for three-season porches. Geraths also provides installation service for the windows. The installation process does not involve changes in...
-
Montana Matt's Golf Inc. was formed on July 1, 2016, when Matt Magilke purchased the Old Master Golf Company. Old Master provides video golf instruction at kiosks in shopping malls. Magilke plans to...
-
Some liabilities are reported at their maturity amount. In general, when should liabilities, prior to the maturity date, be reported at less than their maturity amount?
-
In evaluating a balance sheet, some creditors say the liability section is one of the most important sections. What are some reasons justifying this position?
-
Compute the present value of a \(\$ 10,000\), one-year note payable that specifies no interest, although \(10 \%\) would be a realistic rate. Is the present value less than, greater than, or equal to...
Study smarter with the SolutionInn App