Trucking company sold trucks for 55000 It had accumulated de

Trucking company sold trucks for 55000. It had accumulated depreciation of 1269000 through the date of disposal. What did the trucking company record when it sold the truck.

A gain of 86000

B Gain of 55000

C Loss of 55000

D Loss of 86000

Solution

Particulars $ Original Cost of the trucks 1410000 Less: Accumulated Depreciation 1269000 Net Book Value (1410000-1269000) 141000 Less: Sold the trucks for 55000 Loss on sold of trucks (141000-55000) 86000 Thereofore, the right answer is option (d) Loss of $ 86000