A company discarded a display case that it had originally purchased for $8,000.The case had $7,200 worth of accumulated depreciation.The company should recognize a(n):
A)$0 gain or loss
B)$800 loss
C)$800 gain
D)$8,000 loss
E)$7,200 loss

Question

Quizplus · Accepted Answer

The loss is calculated as the original cost ($8,000) minus the accumulated depreciation ($7,200), resulting in a net book value of $800. Since the display case was discarded, the company incurs an $800 loss.

A Company Discarded a Display Case That It Had Originally