Pine Tree Company sold a delivery truck that it had purchased three years ago. The original purchase price was $70,000. Accumulated depreciation on the delivery truck was $21,000. The delivery truck sold for $45,000. Cash was received.
- What was the book value of the delivery truck at the time of its sale?
- What was the amount of gain or (loss) on the sale of the delivery truck?
- Prepare the journal entry to record the sale of the delivery truck. Use general journal form.