If equipment that cost $100 000 and has accumulated depreciation of $70 000,is sold for $20 000,the journal entry to record the sale would include:
A) CR Loss on sale $10 000
B) DR Gain on sale $10 000
C) DR Accumulated depreciation $70 000
D) CR Equipment $20 000.

Question

Quizplus · Accepted Answer

The journal entry should include debiting Accumulated Depreciation for $70,000 to remove it from the books, as it is no longer associated with the sold equipment.

If Equipment That Cost $100 000 and Has Accumulated Depreciation