Business
John's uncle donated a truck to his company, John's Corporation. The truck had an original cost of $95,000, a book value of $40,000, and a fair value of $60,000. The journal entry by John's Corporation to record this donated asset will include a: a. debit Truck for $95,000 and credit Gain for $35,000. b. debit Truck for $60,000 and credit Gain for $20,000. c. debit Truck for $60,000 and credit Gain for $60,000. d. debit Truck for $95,000 and credit Gain for $95,000.
An asset was acquired on October 1, 2021, for $78,000 with an estimated five-year life and $13,000 residual value. The company uses units-of-production depreciation and expects the asset to produce 20,000 units. Calculate the gain or loss if the asset was sold on March 31, 2024, for $58,000. Actual production was: 2021 = 500 units; 2022 = 3,000 units; 2023 = 3,500 units; 2024 = 1,000 units.