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 correct journal entry to record the sale of equipment includes debiting (removing) the accumulated depreciation of $70,000 from the books. This reflects the reduction of the accumulated depreciation account for the depreciation expense that has been recognized over the equipment's useful life up to the point of sale.

If Equipment That Cost $100 000 and Has Accumulated Depreciation