Greetings Online disposed of a van that cost $22,000 with accumulated depreciation of $15,000.The journal entry would include a:

Question

Quizplus · Accepted Answer

When disposing of a plant asset, the journal entry should include a credit to the asset being disposed of (Van in this case) for its original cost, a debit to Accumulated Depreciation for the total amount of depreciation recognized on the asset up until the date of disposal, and a debit or credit to any relevant gain or loss account. Therefore, all of the answer choices are correct.

Greetings Online Disposed of a Van That Cost $22,000 with Accumulated