149. Wells Company’s delivery truck

  

149. Wells Company’s delivery truck, which originally cost $70,000, was destroyed by fire. At

the time of the fire, the balance of the Accumulated Depreciation account amounted to

$47,500. The company received $40,000 reimbursement from its insurance company. The

gain or loss as a result of the fire was

a. $30,000 loss.

b. $17,500 loss.

c. $30,000 gain.

d. $17,500 gain.

150. A truck that cost $21,000 and on which $10,000 of accumulated depreciation has been

recorded was disposed of for $9,000 cash. The entry to record this event would include a

a. gain of $2,000.

b. loss of $2,000.

c. credit to the Truck account for $11,000.

d. credit to Accumulated Depreciation for $10,000.

151. A truck that cost $36,000 and on which $30,000 of accumulated depreciation has been

recorded was disposed of for $9,000 cash. The entry to record this event would include a

a. gain of $3,000.

b. loss of $3,000.

c. credit to the Truck account for $6,000.

d. credit to Accumulated Depreciation for $30,000.

52. Ace Corporation sold equipment for $12,000. The equipment had an original cost of

$36,000 and accumulated depreciation of $18,000. As a result of the sale,

a. net income will increase $12,000.

b. net income will increase $6,000.

c. net income will decrease $6,000.

d. net income will decrease $12,000.

153. Jarman