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Richard Tech sold a piece of equipment for $7,400 that originally cost $14,800. The balance of the Accumulated Depreciation account related to this equipment was $10,100. The entry to record the gain or loss on the disposal of this equipment would include: a. A debit to loss in the amount of $2,000 b. A credit to gain in the amount of $2,700 c. A credit to gain in the amount of $2,000 d. A debit to loss in the amount of $4,000

Richard Tech sold a piece of equipment for $7,400 that originally cost $14,800. The balance of the Accumulated Depreciation account related to this equipment was $10,100. The entry to record the gain or loss on the disposal of this equipment would include: a. A debit to loss in the amount of $2,000 b. A credit to gain in the amount of $2,700 c. A credit to gain in the amount of $2,000 d. A debit to loss in the amount of $4,000

FINANCIAL ACCOUNTING
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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The entry to record the gain orloss on the disposal of this equipment would include__.

Richard Tech sold a piece of equipment for $7,400 that originally cost $14,800. The balance of the Accumulated Depreciation account related to this equipment was $10,100. The entry to record the gain or loss on the disposal of this equipment would include: a. A debit to loss in the amount of $2,000 b. A credit to gain in the amount of $2,700 c. A credit to gain in the amount of $2,000 d. A debit to loss in the amount of $4,000
Transcribed Image Text:Richard Tech sold a piece of equipment for $7,400 that originally cost $14,800. The balance of the Accumulated Depreciation account related to this equipment was $10,100. The entry to record the gain or loss on the disposal of this equipment would include: a. A debit to loss in the amount of $2,000 b. A credit to gain in the amount of $2,700 c. A credit to gain in the amount of $2,000 d. A debit to loss in the amount of $4,000
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