Respuesta :
There is a loss on the sale of trucks which is equal to $1,000. It is the difference between the cost less depreciation. The calculated amount and the cash amount received out of such a transaction will either be a loss or gain on the sale of the asset.
How the loss or sale of an asset is calculated?
The original purchase price of the asset, minus all accumulated depreciation and any accumulated impairment charges, is the carrying quantity of the asset.
Subtract this carrying quantity from the sale rate of the asset. If the remainder is positive, it is a gain. If the remainder is negative, it is a loss.
In this case, the cost given is $12,000 minus accumulated depreciation of $9,000 will give us $3,000. now, the cash received is $2,000.
Cost after depreciation is more than the amount on the sale of the asset, so the loss so calculated is $1,000.
The journal entry will be:
Cash A/c Dr. $2,000
Accumulated Depreciation $9,000
Loss on sale of the truck $1,000
To Truck $12,000
(Being sale of Truck recorded)
hence, there is a loss on the sale of trucks which is equal to $1,000.
learn more about sale of an asset:
https://brainly.com/question/14542603
#SPJ1
