Question

A truck costing $115000 was destroyed when its engine caught fire. At the date of the fire, the accumulated depreciation on the truck was $55000. An insurance check for $130000 was received based on the replacement cost of the truck. The entry to record the insurance proceeds and the disposition of the truck will include a

Answer 1

If an insurance check for $130000 was received based on the replacement cost of the truck. The entry to record the insurance proceeds and the disposition of the truck will include a Gain on Disposal of $70,000.

How to find the gain on disposal?

Using this formula to determine the gain on disposal

Gain on disposal= Accumulated depreciation +  Insurance check  - Destroyed cost  

Let plug in the formula

Gain on disposal = $50,000 + $130,000 -  $115,000  

Gain on disposal = $70,000

Therefore the  gain on disposal is $70,000.

Learn more about  gain on disposal here:https://brainly.com/question/14542603

#SPJ1