Answer:
Explanation:
The journal entry is shown below:
Computer A/c Dr $3,432
Accumulated depreciation - Truck A/c Dr $18,720
To Truck A/c $20,800
To Gain on disposal of truck $832
To Cash A/c $520
(Being the exchange is recorded)
The computation of the gain on disposal of truck is shown below:
= Fair value of Computer + accumulated depreciation - purchase value of truck - cash paid
= $3,432 + $18,720 - $20,800 - $520
= $832
