Required information 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] FedEx Corporation is the world's 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 FedEx sold a delivery truck for $16,000. FedEx had originally purchased the truck for $28,000 and had recorded depreciation for three years. E9-9 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) $12,000, (b) $10,000, and (c) $15,000. (Enter any decreases to Assets Liabilities, or Stockholders' Equity with a minus sign.) Answer is complete but not entirely correct Stockholders' Equity Assets Liabilities 16,000 (28,000) (12,000) (a) Cash Delivery Expense Accumulated Depreciation-Buildings Cash Loss on Disposal (2,000) (b) 16,000 Delivery Expense (28,000) Accumulated Depreciation-Equipment 10,000 Gain on Disposal (c) Cash 16,000 3,000 Delivery Expense Accumulated Depreciation-Equipment |(28,000) (15,000) E9-9 Part 4 4. Prepare the journal entry to record the disposal of the truck, assuming that Accumulated Depreciation was (a) $12,000, (b) $10,000, and (c) $15,000. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Record the sale of the truck that has an accumulated depreciation balance of $12,000 at the time of disposal Note: Enter debits before credits. Transaction General Journal Debit Credit a Record entry Clear entry View general journal View transaction list Journal entry worksheet 1 2 3 Record the sale of the truck that has an accumulated depreciation balance of $10,000 at the time of disposal Note: Enter debits before credits. Transaction General Journal Debit Credit b Record entry View general jou rnal Clear entry View transaction list Journal entry worksheet 1 2 3 Record the sale of the truck that has an accumulated depreciation balance of $15,000 at the time of disposal Note: Enter debits before credits. Transaction General Journal Debit Credit C. Record entry Clear entry View general journal