A Truck Costing $154,000 Was Destroyed When Its Engine Caught

question 324

Multiple Choice

A truck costing $154,000 was destroyed when its engine caught fire. At the date of the fire, the accumulated depreciation on the truck was $70,000. An insurance check for $175,000 was received based on the replacement cost of the truck. The entry to record the insurance proceeds and the disposition of the truck will include a

• A) Gain on Disposal of $21,000.
• B) credit to the Truck account of $84,000.
• C) credit to the Accumulated Depreciation account for $70,000.
• D) Gain on Disposal of $91,000.

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Definitions:

Post-Mortem

Post-mortem refers to the examination and analysis of a body after death, often to determine the cause of death or for research purposes.

Psychological Support

Emotional and mental assistance provided to individuals dealing with stress, trauma, or mental health issues to improve their coping mechanisms.

Terminal Illness

A disease or condition that is considered incurable and likely to lead to death within a relatively short period of time.

Bowlby's Attachment Theory

A psychological model proposing that the bond formed between children and their caregivers affects personal development and future relationships.