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A company purchased ten delivery vehicles at a cost of $20,000 each and used the group depreciation method. Which of the following entries would be
A company purchased ten delivery vehicles at a cost of $20,000 each and used the group depreciation method. Which of the following entries would be correct when recording the subsequent sale of a vehicle for $8,500 (group accumulated depreciation is $88,000)?
Question 2 options:
| Cash 8,500 Accumulated Depreciation 8,800 Vehicles 17,300 |
| Cash 8,500 Accumulated Depreciation 11,500 Vehicles 20,000 |
| Cash 8,500 Vehicles 8,500 |
| Cash 8,500 Accumulated Depreciation 8,800 Loss on Sale 2,700 Vehicles 20,000 |
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