Fast Pizza Delivery disposed of a delivery vehicle that had been used in the business for four

Question:

Fast Pizza Delivery disposed of a delivery vehicle that had been used in the business for four years. The records of the company provide the following information:

Delivery vehicle .........$35,000

Accumulated depreciation ..... 20,000

Calculate the gain or loss on the disposal of the delivery vehicle for each of the following independent situations:

1. Fast Pizza sold the delivery vehicle to the business manager for $15,000.

2. Fast Pizza sold the delivery vehicle to a homeless shelter for $10,000.

3. Fast Pizza sold the delivery vehicle to a customer for $17,000.

4. Fast Pizza caught on fire and the delivery vehicle was destroyed; Fast Pizza had no insurance.


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