Equipment that cost $90000 and on which $50000 of accumulated depreciation has been recorded was disposed of for $45000 cash.Recording this event would include a(n)
A)gain of $5000.
B)loss of $5000.
C)decrease to Equipment for $15000.
D)increase to Accumulated Depreciation for $15000.

Question

Quizplus · Accepted Answer

The book value of the equipment is $40,000 ($90,000 cost - $50,000 accumulated depreciation). Selling it for $45,000 results in a gain of $5,000 ($45,000 - $40,000).

Equipment That Cost $90000 and on Which $50000 of Accumulated