Which of the following is correct when recording the disposal of equipment for a gain?
A)The company will record a debit to a gain account.
B)The company will record a credit to the equipment account for the asset's book value.
C)The company will record a debit to accumulated depreciation for the total depreciation accumulated to the date of disposal.
D)The company will record a credit to cash.

Question

Quizplus · Accepted Answer

When disposing of equipment for a gain, the company debits accumulated depreciation to remove the total depreciation from the books.

Which of the Following Is Correct When Recording the Disposal