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A Company Discarded a Computer System Originally Purchased for 18,000 The Accumulated Depreciation Was 17,200 The Company Should

Problemas

A company discarded a computer system originally purchased for 18,000 The accumulated depreciation was 17,200 The company should recognize a(an): 800 gain. 800 loss. 0 gain or loss. 7,200 loss. 8,000 loss.

Roztwór

David maestro · Tutor durante 5 años
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Respuesta

To determine whether the company should recognize a gain or loss on the disposal of the computer system, we need to calculate the book value of the computer system at the time of disposal and compare it to the proceeds from the disposal. In this case, since the computer system is discarded, there are no proceeds from the disposal.The book value of the computer system is calculated as follows: Given:- Original Cost = \ 17,200 17,200 = \ loss.The correct answer is: loss.