The Loss on Disposal of Equipment account is reported as Other Losses and Expenses on the income statement.

Question

Quizplus · Accepted Answer

When equipment is disposed of, any losses incurred are reported in the Other Losses and Expenses section on the income statement and not the Cost of Goods Sold section. Therefore, the Loss on Disposal of Equipment account is reported as Other Losses and Expenses on the income statement.

The Loss on Disposal of Equipment Account Is Reported as Other