January 1, 2021, Wangerin purchases a delivery truck for $15…
January 1, 2021, Wangerin purchases a delivery truck for $15,000. She uses units of activity to allocate depreciation expense and has no salvage value for the truck. The truck is expected to last 100,000 miles. Actual activity: January – 10,000 miles February – 10,000 miles March – 20,000 miles April 1st, Wangerin sells the truck for $7,500. What is the gain (loss) recognized?