Connect Access Card for Financial Accounting
9th Edition
ISBN: 9781259738678
Author: Robert Libby, Patricia Libby, Frank Hodge Ch
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 8, Problem 8.16E
Recording the Disposal of an Asset at Three Different Sale Prices
LO8-5 FedEx is the world’s leading express-distribution company. In addition to the world’s largest fleet of allcargo aircraft, the company has more than 650 aircraft and 55,000 vehicles and trailers that pick up and deliver packages. Assume that FedEx sold a delivery truck that had been used in the business for three years. The records of the company reflected the following:
| Delivery truck cost | $35,000 |
| 23,000 |
Required:
- 1. Give the
journal entry for the disposal of the truck, assuming that the truck sold for- a. $12,000 cash
- b. $12,400 cash
- c. $11,500 cash
- 2. Based on the three preceding situations, explain the effects of the disposal of an asset.
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VQT Companies is the world’s leading express-distribution company. In addition to its 643 aircraft, the company has more than 57,000 ground vehicles that pick up and deliver packages. Assume that VQT sold a delivery truck for $20,000. VQT had originally purchased the vehicle and recorded it in the Truck account for $33,000 and had recorded depreciation for three years.
E9-11 (Algo) Part 4
Prepare the journal entry to record the disposal of the truck, assuming Accumulated Depreciation--Truck was (a) $13,000, (b) $7,000, and (c) $17,000. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Nomad Industries is the world's leading express-
distribution company. In addition to its 643 aircraft, the
company has more than 57,000 ground vehicles that pick
up and deliver packages. Assume that Nomad sold a
delivery truck for $25,000. Nomad had originally
purchased the vehicle and recorded it in the Truck
account for $41,000 and had recorded depreciation for
three years.
Required:
1. Calculate the amount of gain or loss on disposal, assuming that
Accumulated Depreciation-Truck was (a) $16,000, (b) $12,000, and (c)
$18,000. (Select "None" if there is no Gain or Loss.)
Gain/Loss
Amount
(a)
(b)
(c)
Required information [The following information applies to the questions displayed below.] Movelt Corporation is the
world's leading express - distribution company. In addition to its 643 aircraft, the company has more than 57,000
ground vehicles that pick up and deliver packages. Assume that Movelt sold a delivery truck for $17,000. Movelt had
originally purchased the vehicle and recorded it in the Truck account for $29,000 and had recorded depreciation for
three years. Required: Calculate the amount of gain or loss on disposal, assuming that Accumulated Depreciation - Truck
was (a) $12,000, (b) $8,000, and (c) $14,000. (Select "None" if there is no Gain or Loss.)
Required information
[The following information applies to the questions displayed below.]
(a)
(b)
(c)
&
Movelt Corporation is the world's leading express-distribution company. In addition to its 643 aircraft, the company has
more than 57,000 ground vehicles that pick up and deliver packages. Assume that Movelt sold a…
Chapter 8 Solutions
Connect Access Card for Financial Accounting
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