A Truck Costing $110000 Was Destroyed When Its Engine Caught

question 271

Multiple Choice

A truck costing $110000 was destroyed when its engine caught fire. At the date of the fire the accumulated depreciation on the truck was $50000. An insurance check for $125000 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 $15000.
• B) credit to the Truck account of $60000.
• C) credit to the Accumulated Depreciation account for $50000.
• D) Gain on Disposal of $65000.

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Definitions:

Electrical Activity

The movement of electrically charged particles, such as ions, which is fundamental to many biological processes, including nerve conduction and muscle contraction.

Heart

A muscular organ responsible for pumping blood through the circulatory system.

Mitral Valve

A valve in the heart that allows blood to flow from the left atrium into the left ventricle but prevents it from flowing back into the atrium.

Atrioventricular Valve

Heart valves located between the atria and ventricles of the heart, facilitating unidirectional blood flow.