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Question(s) / Instruction(s):

ABO purchased a truck at the beginning of 2012 for $140,000. They sold the truck at the end of 2013 for $95,000. If the expected life of the truck was six years with a residual value of $20,000 and ABO uses straight-line depreciation, which of the following is true regarding the entry to record the sale of the truck?

a)            Credit Gain $5,000.

b)            Debit Loss $5,000.

c)            Credit Accumulated Depreciation $40,000.

d)            Credit Truck $100,000.

 

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