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On January 1, 2017, Heart Rock Brewery purchased a van for $42,000. Heart Rock expects the van to have a useful life of eight years
On January 1, 2017, Heart Rock Brewery purchased a van for $42,000. Heart Rock expects the van to have a useful life of eight years and a residual value of $2,000. The depreciation method used was straight-line. On December 31, 2020, the van was sold for $23,000 cash. Requirements 1. What was the carrying amount of the van at the date of sale? 2. Record the sale of the van on December 31, 2020. Requirement 1. What was the carrying amount of the van at the date of sale? (Round to the nearest whole dollar.) The carrying amount of the van at the date of sale was $ 2000 Requirement 2. Record the sale of the van on December 31, 2020. (Record debits first, then credits. Explanations are not required.) Journal Entry Date Accounts Debit Credit 2020 Cash 23000 Dec. 31 Accumulated Depreciation 40000 Gain on Sale of Van Van 42000
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