A truck costing $12,000 and on which $9,000 of accumulated depreciation has been recorded was discarded as having no value. The entry to record this event would include a:
A) gain of $3,000.
B) loss of $3,000.
C) credit to accumulated depreciation for $9,000.
D) credit to accumulated depreciation for $12,000.

Question

Quizplus · Accepted Answer

The truck would have a carrying amount of $3,000. This amount would be recorded as a loss on disposal.

A Truck Costing $12,000 and on Which $9,000 of Accumulated