Assets may be discarded, sold, or exchanged due to wear and tear, obsolescence, inadequacy, or damage by fire or other accident.

Prepare a journal entry for discarding a truck that was purchased for 25,000. The accumulated depreciation to date is 20,000.

Prepare a journal entry for selling for 15,000 a truck that was purchased for 25,000. The accumulated depreciation to date is 20,000.

Prepare a journal entry for selling for 2,000 a truck that was purchased for 25,000. The accumulated depreciation to date is 20,000.