E9-11 (Algo) Demonstrating the Effect of Book Value on Reporting an Asset Disposal (LO 9-5) [The following information applies to the questions displayed below] Liang and Cruz Dellveries is the world's leading express-distribution company. In addition to its 643 aircraft, the company has more than 57,000 ground vehicles that pick up and deliver packages. Assume that Liang and Cruz sold a delivery truck for $31,000. Llang and Cruz had originally purchased the vehicle and recorded it in the Truck account for $51,000 and had recorded depreciation for three years. E9-11 (Algo) Part 1 Required: 1. Calculate the amount of gain or loss on disposal, assuming that Accumulated Depreciation - Truck was (@) $20,000, (D) $16,000, and (c)$26,000. (Select "None" If there is no Gain or Loss.) Amount Gain/Loss (a) None (6) Loss (c) Gain E9-11 (Algo) Demonstrating the Effect of Book Value on Reporting an Asset Disposal (LO 9-5) [The following information opplies to the questions displayed below) Llong and Cruz Deliveries is the world's leading express-distribution company. In addition to Its 643 aircraft, the company has more than 57,000 ground vehicles that pick up and deliver packages. Assume that long and Crux sold a delivery truck for $31000. Llang and Cruz had originally purchased the vehicle and recorded it in the Truck account for $51,000 and had recorded depreciation for three years E9-11 (Algo) Part 4 4. Prepare the Joumal entry to record the disposal of the truck, assuming Accumulated Depreciation --Truck was (a) $20,000. (D) $16.000, and (c) $25,000. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Debit Credit View transaction lit View Joumal entry worksheet No Transaction General Journal Cash Accumulated Depreciation Truck Truck 1 2 b Cash Loss on Disposal of PPE Accumulated Depreciation TUO THION Cash Accumulated Depreciation Truck THUCK Owloon Docal of PPE CP9-2 (Algo) Recording and Interpreting the Disposal of Long-Lived Assets (LO 9-5) During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Original Residual Estimated Accumulated Depreciation Asset Cost Value Lite (traight-line) Machine $81,200 57,400 15 years $63,960 (13 years) Machine B 25,000 3,000 8 years 16.500 (6 years) The machines were disposed of in the following ways: a. Machine A: Sold on January 2 for $25,000 cash. b. Machine B: On January 2, this machine was scrapped with zero proceeds (and zero cost of removal). Required: 1. & 2. Prepare the journal entries related to the disposal of Machine A and B on the January 2 of the current year. TIP: When no cash is recelved on disposal, the loss on disposal will equal the book value of the asset at the time of disposal. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Debit Credit View transaction list View journal entry worksheet No Date General Journal January 02 Cash Accumulated Depreciation Equipment Gain on Disposal of PPE Equipment 1 2 January 02 Accumulated Depreciation Equipment Loss on Disposal of PPE Equipment