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8 May, 11:38

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

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  1. 8 May, 13:00
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    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
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