A truck costing $45,000 and on which $39,000 of accumulated depreciation has been re-corded was discarded as having no value. The entry to record this event would include a
A) gain of $6,000.
B) loss of $6,000.
C) credit to Accumulated Depreciation for $39,000.
D) credit to Accumulated Depreciation for $45,000.

Question

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The truck's book value is $6,000 ($45,000 cost - $39,000 accumulated depreciation). Discarding it with no value results in a loss of $6,000.

A Truck Costing $45,000 and on Which $39,000 of Accumulated