On April 1 of the Current Year,a Company Disposed of an Automobile

question 125

Essay

On April 1 of the current year,a company disposed of an automobile that had cost $20,000.The auto had a salvage value of $2,000,and a useful life of 5 years.The accounting records showed accumulated depreciation for this automobile of $8,100 as of April 1 of the current year.The asset was discarded after an accident,and $10,500 cash was received from an insurance claim.Prepare the journal entry to record the disposal of the automobile.

---

Definitions:

Bimodal Wealth Distribution

A type of wealth distribution in a society where the majority of resources are held by two distinct groups, creating a gap between a small, wealthy class and a larger, less affluent class.

Middle Class

A social group between the upper and working classes, typically characterized by moderate income, education, and professional jobs.

Highly Concentrated Wealth

A situation where a significant portion of wealth is held by a very small percentage of the population, leading to economic disparities.

Multinational Corporations (MNCs)

Companies that operate in multiple countries, managing production or delivering services in more than one country.