Question

Equipment that cost $103000 and on which $54000 of accumulated depreciation has been recorded was disposed...

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.

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Answer #1
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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