E9-9 Demonstrating the Effect of Book Value on Reporting an Asset Disposal [LO 9-5] [The following information applies to the questions displayed below.] MoveIt Corporation is the worlds 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 MoveIt sold a delivery truck for $29,000. MoveIt had originally purchased the truck for $49,000 and had recorded depreciation for three years. E9-9

Part 1 Required: Calculate the amount of gain or loss on disposal, assuming that Accumulated Depreciation was (a) $20,000, (b) $17,000, and (c) $25,000. (Select "None" if there is no Gain or Loss.)

Part 2

2. Using the following structure, indicate the effects (accounts, amounts, and + for increase and for decrease) of the disposal of the truck, assuming that Accumulated Depreciation was (a) $20,000, (b) $17,000, and (c) $25,000. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.

Part 3: Prepare the journal entry to record the disposal of the truck, assuming that Accumulated Depreciation was (a) $20,000, (b) $17,000, and (c) $25,000. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

!.!! 1 Record the sale of the truck that has an accumulated depreciation balance of $20,000 at the time of disposal. 2 Record the sale of the truck that has an accumulated depreciation balance of $17,000 at the time of disposal. 3 Record the sale of the truck that has an accumulated depreciation balance of $25,000 at the time of disposal. Assets Liabilities + Stockholders' Equity Gain/Loss Amount a. b. C