Swann Company sold a delivery truck on April 1, 2016. Swann had acquired the truck on January 1, 2012, for $44,000. 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 $11,200. Required: 1. Prepare any necessary journal entries to record the sale of the truck, assuming it sold for: a. $10,600 b. $7,600 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 $10,600. In addition, Swann had previously recorded a revaluation surplus related to this machine of $5,000. What journal entries are required to record the sale?

Prepare the necessary journal entries on April 1, 2016 to record:

1.

depreciation expense of the delivery truck for 2016

2.

the sale of the truck, assuming it sold for $10,600

Prepare the necessary journal entries on April 1, 2016 to record:

1.	depreciation expense of the delivery truck for 2016
2.	the sale of the truck, assuming it sold for $7,600