A Truck Costing $56,000 Has Accumulated Depreciation of $50,000

question 129

Multiple Choice

A truck costing $56,000 has accumulated depreciation of $50,000.The truck is sold for $8,500.The journal entry to record this transaction is to:

• A)debit Cash for $8,500,debit Accumulated Depreciation - Truck for $50,000,credit Truck for $56,000,and credit Gain on Disposal for $2,500.
• B)debit Accumulated Depreciation - Truck for $50,000,and credit Truck for $50,000.
• C)debit Cash for $8,500,debit Truck for $56,000,credit Accumulated Depreciation - Truck for $50,000 and credit Gain on Disposal for $14,500.
• D)debit Cash for $2,500,debit Truck for $56,000,credit Accumulated Depreciation - Truck for $50,000,and credit Gain on Disposal for $8,500.

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Definitions:

Principals

Individuals or entities who authorize agents to act on their behalf in business transactions or other matters.

Esteem Needs

Higher-level psychological needs involving self-respect, achievement, status, and recognition by others, according to Maslow's hierarchy of needs.

Positive View of Oneself

An individual's perception or attitude towards themselves that is favorable, characterized by self-confidence and self-respect.

Physiological Needs

Basic human necessities such as food, water, shelter, and warmth that must be satisfied for survival.