Question
E9-11 Demonstrating the Effect of Book Value on Reporting an Asset Disposal requirements 1 & 4 only FedEx Corporation is the world's leading express distribution
E9-11 Demonstrating the Effect of Book Value on Reporting an Asset Disposal
requirements 1 & 4 only
FedEx Corporation is the world's leading express distribution company. In addition to the world's largest fleet of all-cargo aircraft, the company has more than 56,700 ground vehicles that pick up and deliver packages. Assume that FedEx sold a delivery truck for $16,000. FedEx had originally purchased the truck for $28,000 and had recorded depreciation for three years.
1. Calculate the amount of gain or loss on disposal. assuming that Accumulated Depreciation was: (a) $12,000, (b) $10,000, and (c) $15,000.
4. Prepare a journal entry to record the disposal of the truck, assuming that Accumulated Depreciation was: (a) $12,000, (b) $10,000, and (c) $15,000.
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