Which of the following items is included in the journal entry if a company sells equipment at a price less than its carrying amount?

Question

Quizplus · Accepted Answer

When a company sells equipment at a price less than its carrying amount, it results in a loss, which is debited to the Loss on sale of equipment account. Thus, Option C is correct. Option A is incorrect because accumulated depreciation is credited when recording depreciation expense, not when recording the sale of equipment. Option B is incorrect because there is no gain on the sale of equipment. Option D is incorrect because equipment is not recorded again during the sale; it was already recorded initially at its carrying amount.

Which of the Following Items Is Included in the Journal