A company purchased a machine for $100,000 many years earlier.The accumulated depreciation on the machine is $100,000.Which of the following statements is TRUE regarding the disposal of the machine for no cash proceeds?
A) The cost of the asset,but not its accumulated depreciation,must be removed from the books.
B) A gain or loss on the disposal can occur.
C) The journal entry to record the disposal will decrease net assets.
D) There will be no gain or loss on the disposal.
Correct Answer:
Verified
Q102: U.S.Generally Accepted Accounting Principles require the reporting
Q106: Smiley Corporation sold equipment costing $70,000 with
Q107: On January 1,2015,Williams Company,Inc.purchased machinery for $350,000
Q109: Martindale Motors purchased a machine that will
Q110: The Loss on Disposal of Equipment account
Q112: Equipment acquired on January 1,2014,is sold on
Q113: Willis Company trades in a printing press
Q114: Katie's Garden Company purchased a machine on
Q116: Kolonas,Inc.,sold equipment for $5,000 cash.The equipment cost
Q135: Tom's Roadside Burger Stand has a beginning
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents