On July 1, 2016, Fleming Company Sells Machinery for $240,000

question 57

Multiple Choice

On July 1, 2016, Fleming Company sells machinery for $240,000. The machinery originally cost $600,000, had an estimated 5-year life and an expected salvage value of $100,000. The Accumulated Depreciation account had a balance of $350,000 on January 1, 2017, using the straight-line method. The gain or loss on disposal is

• A)$40,000 gain.
• B)$10,000 loss.
• C)$20,000 loss.
• D)$10,000 gain.