On December 31, 2012, Cee Corp sells an asset that originally cost $300,000 for $75,000. The accumulated depreciation account has a balance of $200,000 after the current year's depreciation of $15,000 had been recorded. The company should recognize a loss on disposal of
A)$125,000.
B)$ 40,000.
C)$ 25,000.
D)$ 10,000.

Question

Quizplus · Accepted Answer

The loss on disposal is calculated as the difference between the proceeds from the sale ($75,000) and the asset's book value ($300,000 - $215,000 = $85,000). Therefore, the loss on disposal is $10,000 ($85,000 - $75,000).

On December 31, 2012, Cee Corp Sells an Asset That