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 decrease in total assets occurs.

Question

Quizplus · Accepted Answer

The accumulated depreciation account normally has a credit balance and is therefore debited when an asset is disposed of.

Which of the Following Is Correct When Recording the Disposal