Disposal of Property, Plant, and Equipment Small Company sold a delivery truck on April 1, 2013. Swann had acquired the truck on January 1, 2009, for $32,450. At acquisition, Small had estimated that the truck would have an estimated life of 5 years and a residual value of $4,950. At December 31, 2012, the truck had a book value of $10,450. Small uses the straight-line method.
Disposal of Property, Plant, and Equipment
Small Company sold a delivery truck on April 1, 2013. Swann had acquired the truck on January 1, 2009, for $32,450. At acquisition, Small had estimated that the truck would have an estimated life of 5 years and a residual value of $4,950. At December 31, 2012, the truck had a book value of $10,450. Small uses the straight-line method.
Required:
1a. Prepare any necessary journal entries to record the sale of the truck, assuming it sold for $10,175: For compound entries, if an amount box does not require an entry, leave it blank or enter “0”.
| Depreciation | Depreciation Expense | ? | |
| Accumulated Depreciation | ? | ||
| Sale | Cash | 10175 | 0 |
| Accumulated Depreciation | ? | 0 | |
| Truck | 0 | ? | |
| Gain on Disposal of PPE | 0 | ? |
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