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

Question

Quizplus · Accepted Answer

When disposing of equipment for a gain, accumulated depreciation is debited to remove it from the books, reflecting the total depreciation recorded up to the disposal date.

Which of the Following Is Correct When Recording the Disposal