Question

A trucking company sold its fleet of trucks for $55,200. The trucks originally cost $1,416,000 and had Accumulated Depreciation of $1,271,000 recorded through the date of disposal. What gain or loss did the trucking company record when it sold the fleet of trucks?A. Loss of $55,600.
B. Gain of $55,600.
C. Gain of $105,400.
D. Loss of $105,400.

Answer 1

Answer:

the loss at the time of sale is $89,800

Explanation:

The computation of the gain or loss at the time of sale is shown below:

Written down value of trucks at the sale date is

= Cost - Accumulated Depreciation

= $1,416,000 - $1,271,000

= $145,000

And, the sale value is $55,200

So, the loss would be

= $145,000 - $55,200

= $89,800

This is the answer but the same is not provided in the given options

hence, the loss at the time of sale is $89,800