Reference no: EM131202239
Disposal of Property, Plant, and Equipment Temple Company sold a delivery truck on April 1, 2013. Swann had acquired the truck on January 1, 2009, for $42,500. At acquisition, Temple had estimated that the truck would have an estimated life of 5 years and a residual value of $5,000. At December 31, 2012, the truck had a book value of $12,500. Temple uses the straight-line method. (There are three parts to this question)
a. Prepare any necessary journal entries to record the sale of the truck, assuming it sold for $12,575: For compound entries, if an amount box does not require an entry, leave it blank or enter "0".
b. Prepare any necessary journal entries to record the sale of the truck, assuming it sold for $9,375: For compound entries, if an amount box does not require an entry, leave it blank or enter "0".
c. Assume that Temple uses IFRS and sold the truck for $12,575. In addition, Temple had previously recorded a revaluation surplus related to this machine of $4,600. What journal entries are required to record the sale? For compound entries, if an amount box does not require an entry, leave it blank or enter "0".
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: Disposal of Property, Plant, and Equipment Temple Company sold a delivery truck on April 1, 2013. Swann had acquired the truck on January 1, 2009, for $42,500. At acquisition, Temple had estimated that the truck would have an estimated life of 5 year..
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