Question

In 2022, Cheyenne Corp. hasplant guipment that orginally cost $165000 and has cumulated depreciation red which of the following entries should Cheyenne s to record the rement of the quant technique ha rendered woment obsolete, so it is Pant Ecomat Accumulated Deprecation Loss on D o of Pant Assets e n on of Plante Accumulated Depreciation - Bepant ment Accumulated Deprecation Lesson of Hant Assets Equment on Disposal of

Answer 1

Correct answer---------------(c )

General Journal	Debit	Credit
Accumulated Depreciation-Equipment	$            50,000.00
Loss on disposal of plant	$        1,15,000.00
Equipment		$    1,65,000.00

.

Whole amount of loss is equal to purchase price minus accumulated depreciation.

Cost	$     1,65,000.00
Accumulated depreciation	$         50,000.00
Book value	$     1,15,000.00
Sales price	$                        -
Book value	$     1,15,000.00
Gain /(loss)	$   (1,15,000.00)