Complete all parts ezto.mheducation.com/hm.tpx Bookmarks ESC 111 Quiz 10 F Conne
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Complete all partsezto.mheducation.com/hm.tpx Bookmarks ESC 111 Quiz 10 F Connect. Principles of Accounting - ACC 2013: Fall 201 ACC2013-04 HW Questions 8-9 (of 14) 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. Movelt Corporation is the world's leading express-distribution company. In addition to the world's largest fleet of all-cargo aircraft, the company has more than 54,000 ground vehicles that pick up and deliver packages. Assume that Movelt sold a delivery truck for $27.000. Movelt had originally purchased the truck for $45,000 and had recorded depreciation for three years References Section Break E9-9 Demonstrating the Effect of Book Value on Reporting an Asset Disposal LO 9-5 0.52 points E9-9 Part 1
Explanation / Answer
Answer 1 Calculation of amount of gain or loss on disposal Sale value Cost Accumulated depreciation Book Value Gain / (Loss) A B C D=B-C A-D a $27,000 $45,000 $18,000 $27,000 None b $27,000 $45,000 $12,000 $33,000 -$6,000 c $27,000 $45,000 $21,000 $24,000 $3,000 Answer 2 Journal entry to record the disposal Event Account Titles Debit Credit a Cash $27,000 Accumulated depreciation $18,000 Delivery Truck $45,000 b Cash $27,000 Accumulated depreciation $12,000 Loss on sale of delivery Truck $6,000 Delivery Truck $45,000 c Cash $27,000 Accumulated depreciation $21,000 Gain on sale of delivery Truck $3,000 Delivery Truck $45,000
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