an you show me step by step this one too? 13. ABC Inc. purchased a truck on January 1, 2018 for $40,000. The truck had an estimated life of six years and an estimated salvage value of $4,000. ABC uses the straight-line method to depreciate the asset. On July 1, 2020, the truck was sold for $14,000 cash. A. Determine the effect on the accounting equation upon recording the depreciation for 2018. Assets = Liabilities + Stockholders’ Equity Revenues – Expenses =Net Income B. Calculate the gain or loss on the sale of the asset.
an you show me step by step this one too? 13. ABC Inc. purchased a truck on January 1, 2018 for $40,000. The truck had an estimated life of six years and an estimated salvage value of $4,000. ABC uses the straight-line method to depreciate the asset. On July 1, 2020, the truck was sold for $14,000 cash. A. Determine the effect on the accounting equation upon recording the depreciation for 2018. Assets = Liabilities + Stockholders’ Equity Revenues – Expenses =Net Income B. Calculate the gain or loss on the sale of the asset.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Can you show me step by step this one too?
13. ABC Inc. purchased a truck on January 1, 2018 for $40,000. The truck had an estimated life of six years and an
estimated salvage value of $4,000. ABC uses the straight-line method todepreciate the asset. On July 1, 2020, the truck was sold for $14,000 cash.
estimated salvage value of $4,000. ABC uses the straight-line method to
A. Determine the effect on the
Assets = Liabilities +
B. Calculate the gain or loss on the sale of the asset.
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