Cassie Company discards a piece of equipment that cost $120,000, has a life of 5 years, and no residual value. The company uses straight-line depreciation. What is the journal entry to record the disposal of the equipment at the end of year 5? О A) Accumulated Depreciation- Equipment Equipment 120,000 120,000 B) Depreciation Expense- Equipment 120,000 Equipment 120,000 C) Equipment 24,000 Depreciation Expense- Equipment 24,000 D) Equipment 24,000 Accumulated Depreciation- Equipment 24,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Cassie Company discards a piece of equipment that cost $120,000, has a life of 5
years, and no residual value. The company uses straight-line depreciation. What is
the journal entry to record the disposal of the equipment at the end of year 5?
О
A)
Accumulated Depreciation-
Equipment
Equipment
120,000
120,000
B)
Depreciation Expense-
Equipment
120,000
Equipment
120,000
C)
Equipment
24,000
Depreciation Expense-
Equipment
24,000
D)
Equipment
24,000
Accumulated Depreciation-
Equipment
24,000
Transcribed Image Text:Cassie Company discards a piece of equipment that cost $120,000, has a life of 5 years, and no residual value. The company uses straight-line depreciation. What is the journal entry to record the disposal of the equipment at the end of year 5? О A) Accumulated Depreciation- Equipment Equipment 120,000 120,000 B) Depreciation Expense- Equipment 120,000 Equipment 120,000 C) Equipment 24,000 Depreciation Expense- Equipment 24,000 D) Equipment 24,000 Accumulated Depreciation- Equipment 24,000
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