Gaston Owns Equipment That Cost $90,500 with Accumulated Depreciation of $61,000.Gaston

question 36

Multiple Choice

Gaston owns equipment that cost $90,500 with accumulated depreciation of $61,000.Gaston asks $30,000 for the equipment but sells the equipment for $26,000.Which of the following would not be part of the journal entry to record the disposal of the equipment?

• A)Debit Accumulated Depreciation $61,000.
• B)Credit Equipment $90,500.
• C)Debit Loss on Disposal of Equipment $3,500.
• D)Credit Gain on Disposal of Equipment $3,500.
• E)Debit Cash $26,000.

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Definitions:

Fire Insurance Policy

A contract between an individual or entity and an insurance company, offering protection against losses or damage from fire in exchange for premium payments.

Insured

An individual or entity covered by an insurance policy, receiving protection against specified risks.

Insurance Contract

A legally binding agreement between an insurance company and the policyholder, detailing the terms under which the insurer agrees to compensate the insured for specific losses.

Written Policy

A formal statement or document that outlines specific guidelines or regulations within an organization, setting expectations for behavior or operations.