Swann Company sold a delivery truck on April 1, 2019. Swann had acquired the truck on January 1, 2015, for $39,500. At acquisition, Swann had estimated that the truck would have an estimated life of 5 years and a residual value of $3,000. Swann uses the straight-line method of depreciation. At December 31, 2018, the truck had a book value of $10,300.

Required:

1.

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

a.	$10,125
b.	$6,725

2.

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

Assume that Swann uses IFRS and sold the truck for $10,125. In addition, Swann had previously recorded a revaluation surplus related to this machine of $4,000. What journal entries are required to record the sale?

1a. Prepare the necessary journal entries on April 1, 2019 to record:

1.	Depreciation expense of the delivery truck for 2019
2.	The sale of the truck, assuming it sold for $10,125

1b. Prepare the necessary journal entries on April 1, 2019 to record:

1.	Depreciation expense of the delivery truck for 2019
2.	The sale of the truck, assuming it sold for $6,725

3. Assume that Swann uses IFRS and sold the truck for $10,125. In addition, Swann had previously recorded a revaluation surplus related to this machine of $4,000.

1.	Depreciation expense of the delivery truck for 2019
2.	The sale of the truck, assuming it sold for $10,125
3.	Other adjustments related to removing the delivery truck from the books