Question
On April 1, 2020, Sagan Realty disposed of an automobile that had cost $50,000 on January 1, 2018. The automobile had a residual value of
On April 1, 2020, Sagan Realty disposed of an automobile that had cost $50,000 on January 1, 2018.
The automobile had a residual value of $8,000, and a useful life of 5 years.
The accounting records showed accumulated depreciation for this asset of $16,800 at December 31, 2019.
The asset was discarded after an accident, and $11,500 was received from an insurance claim.
Prepare the journal entry to record the disposal of the automobile
On April 1, 2020, Sagan Realty disposed of an automobile that had cost $50,000 on January 1, 2018.
The automobile had a residual value of $8,000, and a useful life of 5 years.
The accounting records showed accumulated depreciation for this asset of $16,800 at December 31, 2019.
The asset was discarded after an accident, and $11,500 was received from an insurance claim.
Prepare the journal entry to record the disposal of the automobile
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Corporate Finance With Connect Access Card
Authors: Stephen Ross ,Randolph Westerfield ,Jeffrey Jaffe
10th Edition
1259672484, 978-1259672484
