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.

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.<br /><br />The book value of the computer system is calculated as follows:<br /><br />\[ \text{Book Value} = \text{Original Cost} - \text{Accumulated Depreciation} \]<br /><br />Given:<br />- Original Cost = \$18,000<br />- Accumulated Depreciation = \$17,200<br /><br />\[ \text{Book Value} = \$18,000 - \$17,200 = \$800 \]<br /><br />Since the computer system is discarded and there are no proceeds from the disposal, the company will recognize a loss equal to the book value of the computer system.<br /><br />Therefore, the company should recognize a \( \$800 \) loss.<br /><br />The correct answer is:<br />\( \$ 800 \) loss.