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ABC Moving and Storage acquired a new truck for $100,000, paying $20,000 cash and signing a...

ABC Moving and Storage acquired a new truck for $100,000, paying $20,000 cash and signing a promissory note for the balance. According to the bill of sale, ABC also paid cash for sales tax of 8%, plus registration, tags and delivery fees of $400. The new truck is estimated to have a 5-year economic life and a residual (salvage) value of $8,400. ABC uses straight-line depreciation. Due to delays, the truck was not placed in service until April 1, 2020. ABC has a December 31 fiscal year

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The date is now March 31, 2025 and ABC sells the used truck for $10,000. Prepare the entry that is required to record the sale of the truck and any gain or loss resulting from the sale.

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