Computing the gain or loss on sale of equipment. Federal Express acquired a deliver) truck on January 1. Year 10. for $48,000. It estimated that the truck would have a six-year useful life and $6,000 salvage value. Federal Express uses the straight-line depreciation method. On July 1. Year 14. Federal Express sells the truck for $14,000. Give the journal entries that Federal Express makes on July 1. Year 14, to recognize depreciation for Year 14 and the sale of the truck.

EXERCISES