Quick freight owned a truck which cost $30,000 when it was purchased on january 1, 2012. it had accumulate depreciation of $18,000 at december 31,2013. the company originally estimated the truck would have a residual value after using it for four years of $3,000. it sold the truck for $22,500 cash on january 1, 2014. the amount of gain (loss) on the sale of the truck was gs

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Snuffles

Business

21 September, 08:31

Quick freight owned a truck which cost $30,000 when it was purchased on january 1, 2012. it had accumulate depreciation of $18,000 at december 31,2013. the company originally estimated the truck would have a residual value after using it for four years of $3,000. it sold the truck for $22,500 cash on january 1, 2014. the amount of gain (loss) on the sale of the truck was gs

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Eduardo Mcmillan · Answer 1

The company bought the truck for $30, 000 and a year later the truck had depreciated. It has lost $18, 000 of its original value. So it cost $12, 000. A year later the truck appreciated slightly. It gained $10, 500 because it was sold for $22, 500. The company had hoped that four years after using the truck, it would cost $33, 000. So the truck experienced a loss of $18, 000 in the first year and managed to gain $10, 500.