When disposing of equipment,the Equipment account is credited for the existing carrying value.

Question

Quizplus · Accepted Answer

When disposing of equipment, the Equipment account is credited for the original cost of the equipment, not the carrying value. The Accumulated Depreciation account is debited for the accumulated depreciation, and any gain or loss is recognized based on the difference between the carrying value and the proceeds from disposal.

When Disposing of Equipment,the Equipment Account Is Credited for the Existing