Disposal of Property, Plant, and Equipment
Small Company sold a delivery truck on April 1, 2013. Swann had acquired the truck on January 1, 2009, for $32,450. At acquisition, Small had estimated that the truck would have an estimated life of 5 years and a residual value of $4,950. At December 31, 2012, the truck had a book value of $10,450. Small uses the straight-line method.
Required:
a. Prepare any necessary journal entries to record the sale of the truck, assuming it sold for $10,175: For compound entries, if an amount box does not require an entry, leave it blank or enter "0".