When a company sells machinery at a price equal to its book value, this transaction would be recorded as a
A) debit to Cash and Accumulated Depreciation and a credit to Machinery
B) debit to Machinery and a credit to Cash and Accumulated Depreciation
C) debit to Cash and Machinery and a credit to Accumulated Depreciation
D) debit to Cash and Depreciation Expense and a credit to Accumulated Depreciation

Question

Quizplus · Accepted Answer

When a company sells machinery at its book value, the entry involves debiting Cash for the amount received, debiting Accumulated Depreciation to remove the accumulated depreciation against the machinery, and crediting Machinery to remove it from the books. This reflects the cash inflow, the removal of the asset's historical cost, and the elimination of the associated accumulated depreciation.

When a Company Sells Machinery at a Price Equal to Its