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Prepare the required journal entry to record disposal

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Reference no: EM13971744

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:

1. Prepare the required journal entry to record disposal of the van, assuming the following sales amounts for cash:
a. $17,300
b. $20,500
c. $15,800

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

Reference no: EM13971744

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