ABO purchased a truck at the beginning of 2018 for $140,000. They sold the truck at the end of 2019 for $95,000. If the expected useful 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 Equipment $100,000

B. Debit Loss $5,000

Explanation:

The following should take place on the Sale of Truck or any PPE item :

Journal to record the disposal of the truck ;

Cash $95,000 (debit)

Accumulated Depreciation $ 40,000 (debit)

Loss on Sale of Truck $ 5,000 (debit)

Truck $  $140,000 (credit)

Accumulated Depreciation Calculation :

Depreciation = (Cost - Residual Value) / Useful Life

                      = ( $140,000 - $20,000) / 6 years

                      =  $ 20,000

Accumulated Depreciation

2018 = $ 20,000

2019 = $ 20,000

Total = $ 40,000

B) Debit Loss $5,000

Explanation:

we need to calculate the depreciation expense:

depreciation expense per year = (total purchase cost - residual value) / useful life

= ($140,000 - $20,000) / 6 years = $120,000 / 6 = $20,000 per year

since the truck was sold two years later, $20,000 x 2 = $40,000 has to be reduced from its book value:

book value = $140,000 - $40,000 (depreciation) = $100,000

the truck was sold for $95,000:

gain/loss = sales value - book value = $95,000 - $100,000 = -$5,000 or $5,000 loss

the correct answer would be b, when, queen, calder hall and london.

explanation:

we always capitalize words when a paragraph or sentence is starting, when an important name is used, when a place is being written, or simply when a noun is used, etc. so in this sentence, sentence is starting from 'when', so it will be written in capital letters. secondly, queen is considered to be an important person, so it will also be written in capital letter. next, the name of the town is mentioned, i-e calder hall, which will also be written in capital letters. in the last,   city name is being used, 'london', which will also be written in capital letters. so option b is the most appropriate one.

x=3

step-by-step explanation:

this is really simple i saw that there was only one term (5x) and thought if that was 15 what would i have to multiply everything else to get it there? well if 5x became 15 then x would have to be 3 so plug the 3 in the x for the other equations and you get 15 for the other ones. so there you go. : )