A photocopier costs $95,000 when new and has accumulated depreciation of $88,000.Suppose the corporation junks this machine and receives nothing.What is the result of the disposal transaction?

Question

Quizplus · Accepted Answer

The book value of the photocopier is $7,000 ($95,000 cost - $88,000 accumulated depreciation). Since the corporation receives nothing for it, the entire book value is a loss.

A Photocopier Costs $95,000 When New and Has Accumulated Depreciation