Gourmet Pizzas Delivery disposed of a delivery car after using it three years. The records of the

Question:

Gourmet Pizza’s Delivery disposed of a delivery car after using it three years. The records of the company provide the following information:

Delivery car .........$25,000

Accumulated depreciation ... 15,000

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

1. Gourmet Pizza’s sold the car to Desserts on Wheels for $13,500.

2. Gourmet Pizza’s sold the car to Premium Beer Corporation for $10,000.

3. Gourmet Pizza’s sold the car to Organic Food Market for $8,250.

4. The car was stolen out of Gourmet Pizza’s parking lot, and the company had no insurance.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...