A trucking company sold its fleet of trucks for $55,400. The trucks originally cost $1,426,000 and had Accumulated Depreciation of $1,273,000 recorded through the date of disposal. What gain or loss did the trucking company record when it sold the fleet of trucks

Loss of $97,600

Explanation:

From the question above a trucking company sold its fleet for $55,400

The truck original cost is $1,426,000

The depreciation is $1,273,000

The first step is to calculate the book value

Book value = cost-accumulated depreciation

= $1,426,000-$1,273,000

= $153,000

The next step is to subtract the book value from the cost to determine if it a gain or loss

= $55,400-$153,000

= - 97,600

Since the value is negative then, the trucking company is at a loss of $97,600