Swann Company sold a delivery truck on April 1, 2016. Swann hadacquired the truck on January 1, 2012, for $44,000. At acquisition,Swann had estimated that the truck would have an estimated life of5 years and a residual value of $3,000. At December 31, 2015, thetruck had a book value of $11,200. Required: 1. Prepare anynecessary journal entries to record the sale of the truck, assumingit sold for: a. $10,600 b. $7,600 2. How should the gain or loss ondisposal be reported on the income statement? 3. Assume that Swannuses IFRS and sold the truck for $10,600. In addition, Swann hadpreviously recorded a revaluation surplus related to this machineof $5,000. What journal entries are required to record thesale?
Prepare the necessary journal entries on April 1, 2016 torecord:
| 1. | depreciation expense of thedelivery truck for 2016 |
| 2. | the sale of the truck, assuming it sold for $10,600 Prepare the necessary journal entries on April 1, 2016 torecord: | 1. | depreciation expense of thedelivery truck for 2016 | | 2. | the sale of the truck, assumingit sold for $7,600 |
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