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FedEx Corporation is the world's leading express-distribution company. In addition to the world's largest fleet of all-cargo aircraft, the company has more than 53,700 ground vehicles that pick up and deliver packages. Assume FedEx sold a delivery truck for $16,000. FedEx had originally purchased the truck for $28,000, and had recorded depreciation for 3 years.
1) Calculate the amount of gain or loss on disposal, assuming that Accumulated Depreciation was: (a) $12,000, (b) $10,000, (c) $15,000.2) Using the following structure, indicate the effects for the disposal of the truck in each of the three preceding situations.
Assets = Liabilities + Stockholders' Equity3) Prepare the journal entry to record the disposal of the truck for each situation in requirement 1.
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