A truck costing $72000 and on which $60000 of accumulated depreciation has been recorded was discarded as having no value.Recording this event would include a(n)

Question

Quizplus · Accepted Answer

When the truck is discarded as having no value, it means it is a total loss. The book value of the asset is $12,000 ($72,000 - $60,000), which represents the loss incurred. Therefore, the correct answer is option B (loss of $12,000).

A Truck Costing $72000 and on Which $60000 of Accumulated