DEF Inc. purchased a truck for a discounted price of $90,000, paid a 10% sales tax, $1500 registration fee, $2,500 insurance premium, and $1000 final destination delivery fee.

DEF. Inc. estimated useful life of 10 years with a residual value of $20,000 for this truck. They sold the truck at the end of year seven for $67,000 and paid a $2,000 broker fee.

Questions

1. How much did the equipment originally cost?

A. $99,000

B. $90,000

C. $100,000

D. $101,500

2. How much was accumulated depreciation at the end before the sale?

A. $56,000

B. $57,050

C. $44,000

D. $70,000

3. How much was the final amount realized from the sales price?

A. $64,000

B. $44,000

C. None of the above.

D. $67,000

4. What was the book value of the truck at the time of sale?

A. $44,000

B. $56,000

C. 465,000

D. $21,000

5. What was the amount of gain or loss from the disposal of the asset?

A. $44,000

B. $21,050

C. $21,000

D. $23,000