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L04 P9-5B. Disposal of Plant Asset Crystal Company has a used delivery truck that originally cost $24,200. Straight-line depreciation on the truck has been
L04 P9-5B. Disposal of Plant Asset Crystal Company has a used delivery truck that originally cost $24,200. Straight-line depreciation on the truck has been recorded for three years, with a $3,500 expected sal- vage value at the end of its estimated six-year useful life. The last depreciation entry was made at the end of the third year. Four months into the fourth year, Crystal disposes of the truck. Required Prepare journal entries to record: a. Depreciation expense to the date of disposal. b. Sale of the truck for cash at its book value. c. Sale of the truck for $17,000 cash. d. Sale of the truck for $10,000 cash. e. Theft of the truck. Crystal carries no insurance for theft.
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