MoveIt Corporation is the world’s leading express-distribution company. In addit
ID: 2563672 • Letter: M
Question
MoveIt Corporation is the world’s leading express-distribution company. In addition to the world’s largest fleet of all-cargo aircraft, the company has more than 54,000 ground vehicles that pick up and deliver packages. Assume that MoveIt sold a delivery truck for $14,000. MoveIt had originally purchased the truck for $23,000 and had recorded depreciation for three years.
1. Calculate the amount of gain or loss on disposal, assuming that Accumulated Depreciation was (a) $9,000, (b) $7,000, and (c) $15,000. (Select "None" if there is no Gain or Loss.)
4. Prepare the journal entry to record the disposal of the truck, assuming that Accumulated Depreciation was (a) $9,000, (b) $7,000, and (c) $15,000. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
MoveIt Corporation is the world’s leading express-distribution company. In addition to the world’s largest fleet of all-cargo aircraft, the company has more than 54,000 ground vehicles that pick up and deliver packages. Assume that MoveIt sold a delivery truck for $14,000. MoveIt had originally purchased the truck for $23,000 and had recorded depreciation for three years.
1. Calculate the amount of gain or loss on disposal, assuming that Accumulated Depreciation was (a) $9,000, (b) $7,000, and (c) $15,000. (Select "None" if there is no Gain or Loss.)
4. Prepare the journal entry to record the disposal of the truck, assuming that Accumulated Depreciation was (a) $9,000, (b) $7,000, and (c) $15,000. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
E9-9 Demonstrating the Effect of Book Value on Reporting an Asset Disposal [LO 9-5] [The following information applies to the questions displayed below] Movelt Corporation is the world's leading express-distribution company. In addition to the world's largest fleet of all-cargo aircraft, the compary has more than 54,000 ground vehicles that pick up and deliver packages. Assume that Movelt sold a delivery truck for $14,000. Movelt had originally purchased the truck for $23,000 and had recorded depreciation for three years. References Section Break E9-9 Demonstrating the Effect of Book Value on Reporting an Asset Disposal [LO 9-5 4 value: 2.00 points E9-9 Part 1 Required 1. Calculate the amount of gain or loss on disposal, assuming that Accumulated Depreciation was (a) $9,000, (b) $7,000, and (c) $15,000. (Select "None" if there is no Gain or Loss.) Gain/Loss Amount a. b. C.Explanation / Answer
1 Gain/(loss) a 0 None =14000-(23000-9000) b 2000 Loss =14000-(23000-7000) c 6000 Gain =14000-(23000-15000) 4 a Cash 14000 Accumulated depreciation 9000 Truck 23000 b Cash 14000 Accumulated depreciation 7000 loss on disposal 2000 Truck 23000 c Cash 14000 Accumulated depreciation 15000 Gain on disposal 6000 Truck 23000
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