Reference no: EM13472715

Assume that a company sold a delivery van that had been used in the business for three years. Records of the company related to the van reflect the following:

                                Delivery van cost                                              $42,500

                                Accumulated Depreciation                            25,200

Required:

Prepare the required journal entry to record disposal of the van, assuming the following sales amounts for cash:

$17,300

$20,500

$15,800

Based on the situation above, explain the effects of the disposal of an asset on the company's financial statements.