Accounting this is not mulitple choice .

5. (10 Points) A Truck with a cost of $40,000 and accumulated depreciation of $10,000 was disposed of on Jan. 1, the first day of the current yr. Prepare Journal Entries to record the disposal under the following assumptions: a. b. It was sold for 45,000 cash It was traded in for a similar truck having a list price of $50,000. A $15,000 trade in was allowed, and the balance was paid in cash