1. A truck cost $60,000 when purchased and has a $60,000 balance in the accumulated depreciation account. If the truck is discarded, we will record:

a. credit to accumulated depreciation, $60,000

b. debit to accumulated depreciation, $60,000

c. debit to truck, $60,000

d. loss on disposal, $60,000

2. A truck cost $60,000 when purchased and has a $50,000 balance in accumulated depreciation account. If the truck is sold for $5,000 cash, we will record:

a. no entry required

b. loss on disposal, $5,000

c. no gain or loss

d. gain on disposal $5,000