A machine that cost $24,000 with a book value of $18,000 was sold for $12,000. The journal entry to record this event would include aa. Gain of $12,000b. Loss of $12,000c. Debit to Accumulated Depreciation for $6,000d. Debit to Accumulated Depreciation for $18,000e. Credit to Machine for $18,000

Given that the machine cost $24,000 and had a book value of $18,000, the accumulated depreciation…

machine that cost $24,000 with a book value of $18 a. Gain of $12,000 b. Loss of $12,000 c. Debit to Accumulated Depreciation for $6,000 d. Debit to Accumulated Depreciation for $18,00 e. Credit to Machine for $18,000

machine that cost $24,000 with a book value of $18 a. Gain of $12,000 b. Loss of $12,000 c. Debit to Accumulated Depreciation for $6,000 d. Debit to Accumulated Depreciation for $18,00 e. Credit to Machine for $18,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A machine that cost $24,000 with a book value of $18,000 was sold for $12,000. The journal entry to record this event would include a
a. Gain of $12,000
b. Loss of $12,000
c. Debit to Accumulated Depreciation for $6,000
d. Debit to Accumulated Depreciation for $18,000
e. Credit to Machine for $18,000

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