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20 October, 18:31

A truck costing $13,600, which has Accumulated Depreciation of $9,160, was sold for $2,160 cash. The entry to record this event would include a:a. gain of $1,000 b. credit to the Vehicles account for $3,000 c. loss of $1,000 d. credit to Accumulated Depreciation for $9,000

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  1. 20 October, 18:51
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    Loss of $2,280

    Explanation:

    Given that,

    cost of truck = $13,600

    Accumulated depreciation = $9,160

    Sale value = $2,160 cash

    Book value on sale = cost of truck - Accumulated depreciation

    = $13,600 - $9,160

    = $4,440

    Loss = Sale value - Book value on sale

    = $2,160 cash - $4,440

    = - $2,280
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