Question

truck which is purchased by Grantham Landscaping, LLC was purchased for $30,000, is expected to be used by the company for 10 years, and the salvage value is $5,000.

After 10 years, Grantham Landscaping, LLC has decided to sell the truck in a private party sell for $4,000 as that is the best price it be sold for in the amount time the company has allowed itself to dispose of the property.

Please provide a journal entry which will account for the loss in disposing of the plant asset (the truck).









5 points

QUESTION 17

A truck which is purchased by Grantham Landscaping, LLC was purchased for $30,000, is expected to be used by the company for 10 years, and the salvage value is $5,000.

After 10 years, Grantham Landscaping, LLC has decided to sell the truck in a private party sell for $8,000 as that is the best price it be sold for in the amount time the company has allowed itself to dispose of the property.

Please provide a journal entry which will account for the gain in disposing of the plant asset (the truck).









5 points

QUESTION 18

Define the term “Intangible Asset”.








5 points

QUESTION 19

For equipment, the accountant will depreciate the cost of the item over a period of time. For a natural resource, the accountant will __________ cost of the item over a period of time.








5 points

QUESTION 20

For equipment, the accountant will depreciate the cost of the item over a period of time. For an intangible asset, the accountant will __________ cost of the item over a period of time. 



Answer 1

1-	date	explanation	debit	credit
		cash	4000
		loss on sale of truck	1000
		truck		5000
2-		cash	8000
		truck		5000
		gain on sale of truck		3000
3-	An intangible asset means an asset which does not have any physical existence and its very difficult to evaluate the value of such assets. example of intangible assets are Goodwill, brand recognition and intellectual property, such as patents, trademarks and copyrights etc
4-	depletion
5-	amortize