A truck costing $56,000 has accumulated depreciation of $50,000. The truck is so

ID: 2474025 • Letter: A

Question

A truck costing $56,000 has accumulated depreciation of $50,000. The truck is sold for $8,500. The journal entry to record this transaction is to:

A. debit Cash for $2,500, debit truck for $56,000, credit accumulated Depreciation-Truck for $50,000, and credit Gain on Disposal for $8,500.

B. debit Cash for $8,500, debit Accumulated Depreciation-Truck for $50,000, credit Truck for $56,000, and credit gain on disposal for $2,500

C. debit Cash for $8,500, debit Truck for $56,000, credit Accumulated Depreciation-Truck for $50,000 and credit Gain on Disposal for $14,500.

D. debit Accumulated Depreciation-Truck for $50,000, and credit Truck for $50,000

B. debit Cash for $8,500, debit Accumulated Depreciation-Truck for $50,000, credit Truck for $56,000, and credit gain on disposal for $2,500

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