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A truck that cost Sparks Company $36,000, was estimated to have a salvage value of $8,000, and was expected to last 10 years. At the
A truck that cost Sparks Company $36,000, was estimated to have a salvage value of $8,000, and was expected to last 10 years. At the end of 5 years of use (assume straight line depreciation), it was sold for $30,000, the journal entry to record the sale will involve:
| A. | A Credit to Gain on Sale for $16,000 | |
| B. | A Credit to Truck for $22,000 | |
| C. | A Debit to Accumulated Depreciation--Truck for $14,000 | |
| D. | A Debit to Loss on Sale for $8,000 |
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