Equipment with a historical cost of $70,000 and Accumulated Depreciation of $15,000 is junked. No cash is received upon disposal. Which journal entry is necessary? a. debit Accumulated Depreciation-Equipment for $15,000 and credit Equipment for $15,000. b. debit Accumulated Depreciation-Equipment for $15,000, debit Gain on Disposal of Equipment for $55,000, and credit Equipment for $70,000. c. debit Accumulated Depreciation-Equipment for $70,000 and credit Equipment for $70,000. d. debit Accumulated Depreciation-Equipment for $15,000, debit Loss on Disposal of Equipment for $55,000, and credit Equipment for $70,000.

Equipment with a historical cost of $70,000 and Accumulated Depreciation of $15,000 is junked. No cash is received upon disposal. Which journal entry is necessary? a. debit Accumulated Depreciation-Equipment for $15,000 and credit Equipment for $15,000. b. debit Accumulated Depreciation-Equipment for $15,000, debit Gain on Disposal of Equipment for $55,000, and credit Equipment for $70,000. c. debit Accumulated Depreciation-Equipment for $70,000 and credit Equipment for $70,000. d. debit Accumulated Depreciation-Equipment for $15,000, debit Loss on Disposal of Equipment for $55,000, and credit Equipment for $70,000.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 8DQ: Fully depreciated equipment costing 50,000 was discarded. What was the effect of the transaction on...

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