2. Mini Computers purchased a delivery truck 4 years ago for $40,000. Currently the accumulated depreciation on the truck is $24,000. Prepare journal entries to show the sale of the truck assuming:

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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2. Mini Computers purchased a delivery truck 4 years ago for $40,000. Currently the
accumulated depreciation on the truck is $24,000. Prepare journal entries to show the sale of
the truck assuming:
1) The truck is sold for $18,000.
2) The truck is sold for $14,000.
3) The truck is scrapped.
Transcribed Image Text:2. Mini Computers purchased a delivery truck 4 years ago for $40,000. Currently the accumulated depreciation on the truck is $24,000. Prepare journal entries to show the sale of the truck assuming: 1) The truck is sold for $18,000. 2) The truck is sold for $14,000. 3) The truck is scrapped.
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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