Bugs Moran Company sells a truck which originally cost $32,000. Accumulated depreciation at the time of the sale was $27,000. The estimated residual value of the truck when it was purchased was $2,000. Assuming the truck was sold for $8,000 cash, Bugs Moran Company would report the following on its income statement with regards to the sale: a. a $6,000 gain on asset sale; b. a $5,000 gain on asset sale; c. a $3,000 gain on asset sale; d. no gain or loss on asset sale. Lucky Luciano Company purchased new equipment on January 1, 2018, at a cost of $80,000. In addition, the company paid $5,000 sales tax on the equipment, $12,000 to have the equipment delivered and installed, and $3,000 testing and calibrating the equipment before it was placed in service. After using the equipment for 30 days, the company had to do some normal maintenance on the equipment at a cost of $150. The total cost of this equipment recorded as an asset in the accounting records is: a. $80,000 b. $97,000 c. $100,000 d. $100,150 Depreciation expense is reported on the income statement as: a. part of net sales; b. part of "other" revenues and expenses; c. depreciation expense in not reported on the income statement; d. part of operating expenses. 18. Gains and losses on the sale of plant assets are reported on the income statement as: a. part of net sales; b. part of "other" revenues and expenses; c. gains and losses on the sale of plant assets are not reported on the income statement; d. part of operating income