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.

Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
Author:WHITTENBURG
Publisher:WHITTENBURG
Chapter8: Depreciation And Sale Of Business Property
Section: Chapter Questions
Problem 6MCQ: Which of the following is not true about the MACRS depreciation system: A salvage value must be...
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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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