Equipment that cost $144000 and on which $120000 of accumulated depreciation has been recorded was disposed of for $36000 cash.Recording this event would include a(n)
A)gain of $12000.
B)loss of $12000.
C)decrease to Equipment for $36000.
D)increase to Accumulated Depreciation for $120000.

Question

Quizplus · Accepted Answer

The book value of the equipment is $24,000 ($144,000 cost - $120,000 accumulated depreciation). Selling it for $36,000 results in a gain of $12,000 ($36,000 - $24,000).

Equipment That Cost $144000 and on Which $120000 of Accumulated