Swann Company sold a delivery truck on April 1, 2016. Swann had
acquired the truck on January 1, 2012, for $45,500. At acquisition,
Swann had estimated that the truck would have an estimated life of
5 years and a residual value of $3,000. At December 31, 2015, the
truck had a book value of $11,500.
|1.||Prepare any necessary journal
entries to record the sale of the truck, assuming it sold for:
|2.||How should the gain or loss on
disposal be reported on the income statement?
|3.||Assume that Swann uses IFRS and
sold the truck for $11,125. In addition, Swann had previously
recorded a revaluation surplus related to this machine of $4,500.
What journal entries are required to record the sale?
Prepare the necessary journal entries on April 1, 2016 to
|1.||depreciation expense of the
delivery truck for 2016
|2.||the sale of the truck, assuming
it sold for $11,125