Equipment costing $45,000 with a book value of $12,000 is sold for $21,500.The journal entry will involve a

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The book value of the equipment is $12,000, therefore the difference between the sale price of $21,500 and the book value is a gain of $9,500. The journal entry should debit cash for $21,500, credit equipment for $45,000, credit accumulated depreciation for $33,000 (which is the difference between the equipment cost and the book value), and recognize a gain on sale of $9,500. Therefore, option C, a debit to accumulated depreciation for $33,000, is the correct answer.

Equipment Costing $45,000 with a Book Value of $12,000 Is