A company discarded a display case originally purchased for $8,000. The accumulated depreciation was $7,200. 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 loss is calculated as the original purchase price ($8,000) minus the accumulated depreciation ($7,200), resulting in a $800 loss.

A Company Discarded a Display Case Originally Purchased for $8,000