Equipment that cost $103000 and on which $54000 of accumulated depreciation has been recorded was disposed of for $57500 cash. The entry to record this event would include a
a. credit to Accumulated Depreciation for $13500.
b. gain of $8500.
c. credit to the Equipment account for $13500.
d. loss of $8500.
Entry for disposal | |||
Particulars | Debit | Credit | |
Cash | 57500 | ||
Accumulated depreciation | 54000 | ||
Gain on disposal | 8500 | (103000-57500-54000) | |
Equipment | 103000 | ||
Correct answer is B Gain 8500
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