A company discarded a computer system originally purchased for $18,000.The accumulated depreciation was $17,200.The company should recognize a(an):
A)$0 gain or loss.
B)$800 loss.
C)$800 gain.
D)$8,000 loss.
E)$7,200 loss.

Question

Quizplus · Accepted Answer

The book value of the computer system is $800 ($18,000 - $17,200). Since the system was discarded, the company should recognize an $800 loss.

A Company Discarded a Computer System Originally Purchased for $18,000