Hawthorn Company purchased a piece of equipment for $25,000 and has accumulated depreciation of $20,000 at the end of the current year. The company decides to discard the equipment at the end of the current year. What is the journal entry for the disposal? A. Accumulated Depreciation Equipment Gain on Disposal 30, 000 Truck 25,000 B. Equipment Gain on Disposal 25,000 Accumulated Depreciation - Equipment 5,000 20,000 C. Accumulated Depreciation Equipment 5,000 20,000 Loss on Disposal 25,000 D. Accumulated Depreciation Equipment 20, 000 Loss on Disposal 5,000 Equipment 25,000

Hawthorn Company purchased a piece of equipment for $25,000 and has accumulated depreciation of $20,000 at the end of the current year. The company decides to discard the equipment at the end of the current year. What is the journal entry for the disposal? A. Accumulated Depreciation Equipment Gain on Disposal 30, 000 Truck 25,000 B. Equipment Gain on Disposal 25,000 Accumulated Depreciation - Equipment 5,000 20,000 C. Accumulated Depreciation Equipment 5,000 20,000 Loss on Disposal 25,000 D. Accumulated Depreciation Equipment 20, 000 Loss on Disposal 5,000 Equipment 25,000

Name: Hawthorn Company purchased a piece of equipment for $25,000 and has a
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Description: Hawthorn Company purchased a piece of equipment for $25,000 and has accumulated depreciation of $20,000 at the end of the current year. The company decides to discard the equipment at the end of thecurrent year. What is the journal entry for the dis

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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