Swann Company sold a delivery truck on April 1, 2016. Swann had acquired the truck on January 1, 2012, for $45000. At acquisition, Swann had estimated that the truck would have an estimated life of 5 years and a residual value of $3,000. At December 31, 2015, the truck had a book value of $11,400.

Required:

1.

Prepare any necessary journal entries to record the sale of the truck, assuming it sold for:

a.	$10,850
b.	$7,650

2.

How should the gain or loss on disposal be reported on the income statement?

3.

Assume that Swann uses IFRS and sold the truck for $10,850. In addition, Swann had previously recorded a revaluation surplus related to this machine of $3,500. What journal entries are required to record the sale?