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Financial statements for Bernard Corp. are presented below: BERNARD CORP. Total assets on the December 31, 2020 statement of financial position were $ 1,108,000. Accumulated depreciation on the equipment sold was $ 56,000.
-When the equipment was sold, the Buildings and Equipment account was credited with
A) $ 48,000.
B) $ 56,000.
C) $ 80,000.
D) $ 104,000.

Question

Use the following information for questions.
Financial statements for Bernard Corp. are presented below:  BERNARD CORP.  Total assets on the December 31, 2020 statement of financial position were $ 1,108,000. Accumulated depreciation on the equipment sold was $ 56,000.
-When the equipment was sold, the Buildings and Equipment account was credited with
A) $ 48,000. 
B) $ 56,000. 
C) $ 80,000. 
D) $ 104,000.

Quizplus · Accepted Answer

When equipment is sold, the Buildings and Equipment account is credited with the book value of the equipment being sold. The given options suggest different values, and without specific financial details about the original cost, accumulated depreciation, or the sale price of the equipment, the correct answer cannot be determined from the information provided. However, based on standard accounting practices, the account would be credited with the book value of the equipment at the time of sale.

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