Answer:
B. Debit Loss $5,000.
Explanation:
depreciation per year under straigh-line method:
[tex]\frac{cost- salvage}{useful \: life}[/tex]
[tex]\frac{140,000 - 20,000}{6}[/tex]
depreciation per year: 20,000
book value at 2019 year-end:
140,000 - 20,000 x 2 = 100,000
disposal value: 95,000
loss for 5,000
loss at diposal: 5,000 debit
cash 95,000 debit
accumulated depreciation 40,000 debit
truck 140,000 credit
