Equipment that originally cost $775 with no salvage value has accumulated depreciation of $700.The equipment is discarded.The transaction to record the discarding of the equipment would result in a:

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The book value of the equipment is calculated as the original cost ($775) minus accumulated depreciation ($700), which equals $75. When the equipment with a book value of $75 is discarded with no salvage value, it results in a loss of $75 because the company is losing an asset valued at $75 on its books.

Equipment That Originally Cost $775 with No Salvage Value Has