Equipment that originally cost $900 with no salvage value has accumulated depreciation of $700.The equipment is discarded.The transaction to record the discarding of the equipment would result in a:

Question

Quizplus · Accepted Answer

When the equipment is discarded, we need to remove it from the books by recording the loss. The loss is calculated as the original cost minus the accumulated depreciation. In this case, the loss is $900 - $700 = $200. Therefore, the answer is C, loss of $200.

Equipment That Originally Cost $900 with No Salvage Value Has