Which of the following items is included in the journal entry if a company sells equipment at a price greater than its book value?

Question

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When a company sells equipment at a price greater than its book value, it generates a gain on the sale. This gain is credited to the Gain on sale of equipment account, which is included in the journal entry. Option B is incorrect because a loss on the sale is recorded when the equipment is sold for less than its book value. Option C is incorrect because the credit to Accumulated depreciation is made to remove the accumulated depreciation for the specific equipment that has been sold. Option D is incorrect because the debit to Equipment is made when the equipment is originally purchased or acquired, and it is not affected by the sale.

Which of the Following Items Is Included in the Journal