Great Farms Company sold some fully depreciated equipment for $4,100 cash. The equipment had been purchased for $49,600, and the company had estimated the useful life at 8 years and a residual value at $5,600. How will this sale affect Retained Earnings?
A) It will increase Retained Earnings by $4,100.
B) It will decrease Retained Earnings by $44,000.
C) It will decrease Retained Earnings by $1,500.
D) It will have no effect on Retained Earnings.
Correct Answer:
Verified
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