Equipment costing $35,000 with a carrying amount of $12,000 is sold for $11,500. The journal entrywill involve:

Question

Quizplus · Accepted Answer

The correct answer involves debiting Accumulated Depreciation for $23,000, which is the difference between the equipment's original cost ($35,000) and its carrying amount ($12,000). This entry removes the accumulated depreciation from the books and reflects the depreciation expense that has been recognized over the equipment's useful life up to the point of sale.

Equipment Costing $35,000 with a Carrying Amount of $12,000 Is