A truck cost $60,000 when purchased and has a $55,000 balance in the accumulated depreciation account. If the truck is discarded we will record: a. loss on disposal, $5,000. b. gain on disposal, $5,000. c. no gain or loss because it was discarded. d. loss of $60,000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A truck cost $60,000 when purchased and has
a
$55,000 balance in the
accumulated
depreciation account. If the truck is discarded
we will record:
a. loss on disposal, $5,000.
b. gain on disposal, $5,000.
c. no gain or loss because it was discarded.
d. loss of $60,000.
Transcribed Image Text:A truck cost $60,000 when purchased and has a $55,000 balance in the accumulated depreciation account. If the truck is discarded we will record: a. loss on disposal, $5,000. b. gain on disposal, $5,000. c. no gain or loss because it was discarded. d. loss of $60,000.
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