Use the information above to answer the following question.Assume the company decides to sell the computer system on July 1,2015 for $1,000,000.Which of the following is not true concerning the journal entry(ies)required on July 1?
A)The depreciation expense must be recorded for 6 months,January 1 to July 1.
B)The Computer System asset account must be credited for $1,600,000 to record the sale.
C)The amount of the debit to accumulated depreciation at the date of sale is $612,500.
D)The loss on the sale is $12,500.

Question

Quizplus · Accepted Answer

The loss on the sale is not $12,500. The correct calculation would involve determining the book value of the computer system at the time of sale and comparing it to the sale price to find the actual gain or loss.

Use the Information Above to Answer the Following Question