A truck costing $72,000 and on which $60,000 of accumulated depreciation has been recorded was discarded as having no value.The entry to record this event would include a
A)gain of $12,000.
B)loss of $12,000.
C)credit to Accumulated Depreciation for $60,000.
D)credit to Accumulated Depreciation for $72,000.

Question

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The truck's book value is $12,000 ($72,000 cost - $60,000 accumulated depreciation). Discarding it with no value results in a loss of $12,000.

A Truck Costing $72,000 and on Which $60,000 of Accumulated