A truck costing $48,000 and on which $40,000 of accumulated depreciation has been recorded was discarded as having no value. The entry to record this event would include a
A) gain of $8,000.
B) loss of $8,000.
C) credit to Accumulated Depreciation for $40,000.
D) credit to Accumulated Depreciation for $48,000.

Question

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The truck's book value is $8,000 ($48,000 cost - $40,000 accumulated depreciation). Discarding it with no value results in a loss of $8,000.

A Truck Costing $48,000 and on Which $40,000 of Accumulated