Company discarded a computer system originally purchased for $18,000.

Company discarded a computer system originally purchased for $18,000. The accumulated depreciation was $17,200. The company should recognize a(an):
Select one:
a. $800 loss.
b. $8,000 loss.
c. $0 gain or loss.
d. $800 gain.

Solutions

Expert Solution

Answer: a - $800 loss

Explanation

Purchase Cost = $18000

Written down value of computer system = Cost - Accumulated Depreciation

= $18000 - $17200 = $800

Company discarded a computer system carrying a value of $800. ie $800 will be recognized as loss.

ekkarill92 answered 2 years ago

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