Equipment with a Cost of $15 000 and Accumulated Depreciation

question 56

Multiple Choice

Equipment with a cost of $15 000 and accumulated depreciation of $12 500 was sold for $1700.The journal entry to record the disposal would include:

• A) Cr Cash $1700.
• B) Cr Loss on sale $800.
• C) Dr Accumulated depreciation $12 500.
• D) none of the answers provided.

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Definitions:

Future Value

The value of an asset or cash at a specific future date, based on its expected growth over time.

Compounded Monthly

Interest calculation method where the accrued interest is added to the principal sum each month, leading to interest on interest.

Interest Charge

A fee charged by a lender to a borrower for the use of borrowed money, often expressed as an annual percentage of the principal.

Inherited Money

Wealth or assets received from someone after their death.