Company sells fixed asset

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Reference no: EM131264851

A company sells a fixed asset (equipment) for $30,000. The asset originally cost $80,000 and had accumulated depreciation of $55,000 at the time of the sale. Select the journal entry to recognize the sale.

Debit Cash $30,000 Debit Accumulated Depreciation $55,000 Credit Equipment $80,000 Credit Gain on Disposal of Equipment $5,000

None of the options are correct

Debit Cash $30,000 Credit Equipment $30,000

Debit Cash $30,000 Debit Accumulated Depreciation $55,000 Debit Loss of Disposal of Equipment $5,000 Credit Equipment $90,000.

Reference no: EM131264851

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