Answer:
gain of $14,000
Explanation:
Data provided in the question:
Cost of the truck = $56,000
Accumulates depreciation on January 1, 2018 = $38,000
Reimbursement received from the insurance company = $32,000
Now,
the book value on January 1, 2018
= Cost of the truck - accumulated depreciation
= $56,000 - $38,000
= $18,000
since, the book value is less than the Reimbursement amount received, therefore a gain will be recognized
The amount of gain = $32,000 - $18,000
= $14,000
