The Entry to Record the Disposal of a Laptop Computer

question 92

Multiple Choice

The entry to record the disposal of a laptop computer with a cost of $3,000 and an accumulated depreciation of $2,500 would be:

• A) debit Depreciation Expense $3,000; credit Equipment $3,000.
• B) debit Accumulated Depreciation $2,500; debit Loss on Disposal of an Asset $500; credit Equipment $3,000.
• C) debit Equipment $3,000; credit Accumulated Depreciation $3,000.
• D) debit Cash $3,000; credit Equipment $3,000.

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Definitions:

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity (such as production of a good or service) more efficiently than another activity.

Opportunity Cost

The loss experienced from bypassing the following superior alternative in the course of decision-making.

Capital

Refers to financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the tangible machinery and production equipment used in environments such as factories.

Corporate Bond

A debt security issued by a corporation and sold to investors, promising to pay back with interest at a future date.