A truck costing $12,000, which has Accumulated Depreciation of $9,000, was sold for $2,000 cash. The entry to record this event would include a: gain of $1,000. credit to the Vehicles account for $3,000. loss of $1,000. credit to Accumulated Depreciation for $9,000.

Good Dairy sold a delivery truck for cash of $6,400. The original cost of the truck was $26,000, and a loss of $4,000 was recognized on the sale. The accumulated depreciation at the date of sale must have been: A . $15,600.   B.      $12,400.                 C. $8,400.               D. $19,600.

You are an accountant for ABC Corp. Your purchasing department has procured products invoiced for $25,000 with 2/10 Net 30 terms. If you pay the invoice within 15 days, your payment would be:    $25,500.   $20,000.    $24,500.   $25,000.    Accounting depreciation systematically allocates the cost of an asset in time over its useful life while economic depreciation deals with:   The estimated loss of value of an asset minus the revenue it produces.  The estimated salvage value of an asset at its end-of-life.  The change of an asset’s value based on fair market price.  The value of an asset matched to the revenue it creates indirectly.

White Mountain Supply Company purchases warehouse shelving for $18,500. Shipping charges were $370, and assembly and setup amounted to $575. The shelves are expected to last for 9 years and have a scrap value of $700. Use the straight-line method of depreciation to answer the questions. (Round your answers to the nearest cent.) (a) What is the annual depreciation expense (in $) of the shelving?   (b) What is the accumulated depreciation (in $) after the third year?   (c) What is the book value of the shelving (in $) after the fifth year?